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One of the methods employed by money launderers is a cash-for-cash transaction at a casino designed to launder proceeds to make them appear to be gambling winnings. In such circumstances, a patron purchases chips with proceeds from illegal activity and then cashes out the chips, receiving either cash or a monetary instrument such as a check or wire transfer. (f) proposing legislation to curtail use of casinos by money launderers, including initiatives designed to prevent money launderers from engaging in cash for cash transactions, and to disqualify convicted money launderers from licensure and to require their exclusion from casinos;. Moreover, New Jersey is particularly susceptible to smurfing activity by virtue of the presence of our gambling industry. At casinos, smurfs often purchase a significant quantity of chips, engage in a minimum amount of gambling, and then exchange the chips for “clean” cash or a monetary instrument from the casino. 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Rosalyn Foran
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