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Bearer bonds are a controversial financial instrument that is unregistered and therefore only owned by the person who is physically holding the document.

The Financial Times has reported that although the U.S. Treasury moved to eliminate bearer bonds from global finance in 1982, these opaque securities are still being used, especially in the offshore banking world.

Now in B.C. casinos, for gamblers presenting cash or bearer bonds of $10,000 or more, “at a minimum, the declaration must outline a customer’s identification and provide the source of their funds, including the financial institution and account from which the cash or bond was sourced,” German’s recommendation states.

If gamblers make two such transactions in a row, casinos can only accept the funds “once it has been determined that it is not of a suspicious or illegal nature,” Eby said. Eby said he understands that German’s recommendation will also cover bank drafts, which have been used in suspicious B.C. casino transactions, according to government documents.

Postmedia News asked Eby is this first recommendation did not simply mean more of the same type of transaction reporting that casino staff have already been filing under B.C. Lottery rules, while staff continue to accept suspected money laundering transactions. Eby said he understands that critics have reported that the business model of B.C.’s casino industry is to accept dubious transactions with little questioning.