Parimatch and Other Bookmakers in India Suspected of Moving $208M Abroad Disguised as AI Investments

India’s Enforcement Directorate (ED) suspects that illegal betting operators may have moved more than $208 million out of the country by disguising the transfers as investments in overseas artificial intelligence companies, The Economic Times reports.

One such case is being examined as part of the investigation into Parimatch. The ED traced transfers of more than $20.8 million from two Delhi-based companies to two entities in Singapore. The transactions were presented as investments in technology businesses.

According to investigators, the scheme may have worked like this:

• a new company would be set up in India and receive funds from betting operations;
• the money would then be transferred abroad to a recently incorporated technology company that may have had little or no actual business activity;
• the transfer would be presented as a legitimate investment in that company;
• the funds could then be moved through other foreign entities before ultimately reaching the owners of illegal betting operations.

Investigators believe some of the companies involved had nominee directors and went dormant after the transactions were completed.

The valuations of the overseas companies may also have been artificially inflated to justify large transfers. This allowed substantial sums to be presented as ordinary investments in technology businesses.

The ED is also investigating advisers who may have helped arrange such transactions.

The investigation into Parimatch has been under way for several months. The ED previously carried out searches in several parts of India and examined companies and intermediaries suspected of handling player deposits, payouts and overseas transfers.

The Parimatch-linked network in India is estimated to handle more than $315 million a year.

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