CASINOS LAUNDER CASH FOR DRUG TRAFFICKERS: U.S.

OTTAWA -- Canadian drug traffickers are laundering illicit cash through
casinos and clandestinely shipping shady money to the Caribbean and South
America, says a U.S. intelligence report.

Drug proceeds are also being moved quietly into Canada and deposited in
banks, adds the stark assessment by the Drug Enforcement Administration,
which is leading the U.S. government's fight against illegal substances.

There is growing concern among police and security officials about the
persistent efforts of drug syndicates, terrorists and other criminals to
hide the source of ill-gotten money by making large purchases or conducting
transactions with legitimate institutions.

The August DEA report, Money Laundering in Canada, says Canadian drug
traffickers intent on using casinos to launder their proceeds begin by
purchasing chips or opening an account at the gambling establishment.

The trafficker gambles, but is careful to lose only a relatively small sum
of money, the report notes. "The trafficker, or an associate, will then
cash in the chips or withdraw the funds, which appear to be legitimate
winnings from the account."

The report, which relies on DEA intelligence, does not refer to specific
Canadian casinos. Rusty Payne, a spokesman for the agency, said providing
additional details would compromise intelligence-gathering.

"We don't have a lot more specific information that we can put out on that
brief, other than to say we know the situation exists. We know the methods
that are being used."