👠 Crackdown on underground casinos in Chile 🇨🇱: prosecutors dismantle a Chinese money laundering network and shut down illegal gambling venues

👠 Crackdown on underground casinos in Chile 🇨🇱: prosecutors dismantle a Chinese money laundering network and shut down illegal gambling venues

To transfer money from Chile to China, the individuals involved reportedly used the so-called “Hawala method” (from the Arabic term meaning “transfer” or “remittance”), an informal financial settlement system that allows money or valuables to be transferred between countries without physically moving cash. The system operates through a network of intermediaries, known as hawaladars, who facilitate transactions based on trusted personal relationships and the use of secret codes.

🔣 Authorities detained 37 individuals — mainly members of the Chinese community🇨🇳 and Venezuelan nationals🇻🇪, who traditionally cause a stir in Chile as well. Most were released pending investigation, although four remain in pre-trial detention.

🔣 Members of the Hongmen organization face charges including illegal possession of firearms, kidnapping, and money laundering. Authorities are also investigating the group's alleged involvement in sexual exploitation.

🔣 During Operation Eastern Wall II, investigators identified and shut down 26 illegal gambling venues. The establishments were located in downtown Santiago and had been converted into bunker-like facilities equipped with reinforced security doors.

🔣 Authorities seized approximately 80 million Chilean pesos (86,760 USD) from the gambling venues, an amount investigators believe represents the network's daily revenue. They also confiscated more than 1,062 motherboards, nearly 30,000 USD in cash, over 550 rounds of 9 mm ammunition, and three firearms.

🔣 According to prosecutors, the network operated for more than two years and allegedly enjoyed protection from a labor union. In addition, a Chilean senator affiliated with the Communist Party has also come under investigation over alleged activities related to Chinese lobbying in Congress during 2025.

🔣 Authorities announced that they will strengthen oversight of the country's financial infrastructure linked to the gray market.

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