May 13, 2022

A Quebec company continues its fight against money laundering in the United States

The company’s goal is to make the player more transparent, summarizes its CEO, Earle Hall.

Axes Network, whose head office is located on Avenue Galilée, mainly collects information to detect those who attempt to launder money in casinos. This information is collected, among other things, through a small box connected to each slot machine. They are then stored using cloud computing technologies (Cloud) and blockchain (Blockchain).

Earl Hall, an entrepreneur from Quebec

Photo: Radio Canada

The [joueurs] must provide their playing time and the amount played at each visit as well as the number of visits per year. If they deviate from the information provided, they will be banned from the casino automatically, depending on the legislation, popularizes the CEO.

« Those who have nothing to hide are not afraid to reveal themselves. »

A quote from Earle Hall, PDG d’Axes Network

For now, this technology is not installed in Quebec casinos. However, it is present on approximately 50,000 slot machines located in 40 countries.

The company also works with the Polish government, the world leader in the protection of players and gaming establishments, according to Mr. Hall.

Axes recently received $20 million from Quebec investors, including Desjardins and the Quebec government.

Prestigious conference

On January 27, Mr. Hall will deliver a lecture in Washington entitled The Future of Money, Governance and Law. Invited by the Global Governement Blockchain Association (GBA), the Quebecer will address elected members of the American Congress and members of other governments, such as that of Saudi Arabia.

Congress mandated the Global Governement Blockchain Association to provide them with recommendations in their fight against money laundering. This demonstrates, according to the CEO, a political will to tackle the problem.

« For a year and a half, two years, the United States has been extremely intense because there really is a federal political will to eradicate all forms of money laundering. The gaming industry is an easy place to launder money »

A quote from Earle Hall, PDG d’Axes Network

Axes will be the only global gaming industry company invited to speak. We are very proud to represent Quebec and Canada, says the CEO.

Whitening

Money laundering through casinos is a well documented phenomenon.

In June 2021, following a series of reports on the presence of organized crime in casinos, the Quebec government agreed to strengthen mechanisms for sharing information between Loto-Québec and police forces on money laundering schemes, typologies and techniques.

Canadian currency banknotes.

The COVID-19 pandemic has greatly deteriorated the economic situation around the world.

Photo : Getty Images / joshlaverty

Currently, it is still possible to use cash in the province’s casinos. However, monetary amounts over $10,000 must be reported to the Financial Transactions and Reports Analysis Center of Canada (FINTRAC).

In British Columbia, a report called Dirty Money revealed in 2018 that at least $100 million had been laundered in gambling establishments in this province. This report had also prompted the Horgan government in 2019 to launch a public inquiry into money laundering.

Axes is trying to equip governments to remedy this problem.

With the rapid growth of technological means of stealing, laundering and doing illegal activities in casinos, humans cannot keep up with the rapid evolution of illicit activities., warns Mr. Hall.

Loto-Québec in reflection

Loto-Québec confirms having had discussions with the Quebec company. This supplier was met a few months ago, as we meet several other suppliers, replies Renaud Dugas, spokesperson for the state-owned company.

Although his product was interesting, it did not integrate well with the technologies used with our current systems., underlines Mr. Dugas, however, without elaborating on the advantage.

A person in a casino.

A person in a casino

Photo : Associated Press / Julie Jacobson

Loto-Québec says it wants to continue its collaboration with the Financial Transactions and Reports Analysis Center of Canada, its business partners and police forces, and said take the scourge very seriously.

The CEO of Axes Network is still confident for a future partnership. The arrival of Loto-Québec’s new CEO last year is extremely exciting for Axes and many other technology companies. Basically, he’s a very successful career technologist. Since his arrival, we have had discussions to find out how we work across the planet.