The Financial Intelligence Analysis Unit (FIAU) would like to inform subject persons that the Financial Action Task Force (FATF) has published a new report entitled, ‘Red Flag Risk Indicators – Risks of Gaming and Gambling’.
As gaming and gambling services become increasingly digital, interconnected and cross-border, new risks related to money laundering (ML), terrorist financing (TF) and proliferation financing (PF) continue to emerge. The report’s findings and accompanying risk indicators assess vulnerabilities across casinos, gambling and online gaming, including online platforms, payment channels, illegal operators and their connections to the broader financial system. Payment methods commonly used within the sector, including cash, e-wallets, mobile money and virtual assets, are particularly vulnerable to ML abuse.
Gaming and gambling platforms also rely on a broad network of supporting services, such as social media platforms and digital marketplaces, which may fall outside existing regulatory frameworks, thus presenting additional opportunities for criminal exploitation.
Furthermore, criminals and illegal operators may take advantage of inconsistencies in regulatory approaches across jurisdictions. These differences can hinder information-sharing between public and private sector stakeholders and create obstacles to effective international cooperation.
To support efforts to detect and mitigate these risks, the FATF has introduced new risk indicators designed to assist both public and private sector entities in identifying, assessing and responding to suspicious activity. Key indicators include the use of multiple accounts and payment methods under different identities; inconsistencies between customer and payment details; suspicious identity documentation; criminal links between gambling operators or beneficial owners, including involvement in cyber-enabled fraud and organised crime; unusual betting and transaction patterns; and complex ownership structures designed to conceal beneficial ownership.
Interested parties may access the publication directly from the FATF’s website or from the FIAU’s website under the tab “FATF”.