News

RCMP says seized ATMs were money laundering stations

February 17, 2014

Police in the Canadian city of Winnipeg have seized a half-dozen white label ATMs they said were being used to launder money in a high-level trafficking operation.

According to a report by the CBC, the RCMP removed ATMs from four bars in the Manitoba capital city. The machines were registered to a company under the directorship of Carol Banayos, sister of Oliver Banayos, who has been arrested on drugs and weapons charges.

The seizure underscores concerns raised in a 2007 report by the Financial Transactions and Reports Analysis Center of Canada over the potential use of white label machines for money laundering purposes.

According to the CBC report, Quebec is the only Canadian province that regulates the sale of private ATMs. Last year, the provincial government enacted rules that require owners and operators of private ATMs to submit to a background check and explain where they acquire the cash used in their ATMs.

Read more about regulatory issues.