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Thursday, March 20, 2025

Ross Meurant: Banks Have a Liability - KYC

A financial planner defrauded almost $4.5 million from his former partner, cousins and primary school friends to fund a “voracious” gambling addiction that betting companies fed with free tickets, client managers and reminders to his phone.

This happened in Australia.(1)

The 32-year-old perpetrator of the above frauds i.e. obtaining financial advantage by deception, pleaded guilty, but left a courtroom cramped with distraught devastated financially ruined family, friends and others from whom he had conned hundreds of thousands to be ostensibly, invested in false front (Ponzi) financial scheme.

The availability of gambling apps on his phone provided easy access to cassinos which in turn regularly sent the gambler incentives to gamble e.g. free tickets to a soiree and or client manager, to encourage betting.

One victim (a relative) asked why the banks had not intervened when $20,000 per day was being transferred to accounts, they would have or could easily have identified as gambling facilities.

Which brings me to the point of this epistle:  Banks have a duty of care to “Know you Client/Customer” and other international anti-money laundering protocols.

Following publication in Breakingviews of Finding Fraudsters in Crypto Currencies, (2) in which victims, perpetrators and facilitators, were defined, Banks seemed to emerge from their stables, racing to “shut the gates after the horses had bolted” – so to speak, flooding clients with warnings about scammers.

I am cognisant of a case currently being constructed to file a class action against a bank, as a facilitator of a crypto fraud.  The delay is due to the fact that, Justice is Money: Just Money.

Whether or not the Australian victims of the above-mentioned fraud, decide to file a class action against a bank, is yet to be seen.

Online gambling addictions are as they are. Easily accessible via apps these perpetrators hound their victims continuously. No laws to stop it as they’re international agencies.

Never goes away.

Addendum.

As a cop, in a previous career, I had seen the damage gambling caused in families, when overseeing domestic disputes which produced serious outcomes for families. 

During my last term in parliament as an MP, I voted against legislation providing the legal pillars upon which Sky Cassino in Auckland, was founded.

I specifically recall a senior member of the National party, trying to encourage me to vote for the legislation, but at that stage of my career, I was Leader of the first minor political party to have been formed under the pending MMP regime – a brainchild of Rt Hon Jim Bolger, and accordingly, I did not buckle to the pressure.

Ross Meurant BA MPP.  Company Director. Founder of  www.gena.co.nz  Former Police Inspector, Member of Parliament & Honorary Consul. 

(1) https://www.theage.com.au/national/victoria/blown-our-family-apart-financial-planner-gambled-away-4-5m-in-52-betting-accounts-20250319-p5lkvl.html
(2) https://breakingviewsnz.blogspot.com/2024/11/ross-meurant-finding-fraudsters-in.html

2 comments:

MT_Tinman said...

I write as someone who has suffered because of another person's gambling addiction: Hogwash!

A bank is an business that takes the money you voluntarily loan it, uses that money to make more money and gives you a (usually an agreed) portion of the profit.

As part of that business the bank loans money for a fee.

ALL responsibility for that money outside of the bank's business is the responsibility of the owner of said money.

Attempting to steal from bank shareholders to re-finance fools may be legal but it is still very wrong.

I make no comment about legal gambling operations.

Anonymous said...

KYC sems to hold a different view - and that is part of international financial protocols re money laundering as the blogs states.

$20k a day should definitely have caught the algorithm