FATF flags new money laundering risks for gaming and gambling operators

The Financial Intelligence Analysis Unit has flagged a new FATF report that puts gaming and gambling operators on notice about evolving financial crime risks. The report, titled 'Red Flag Risk Indicators – Risks of Gaming and Gambling', assesses vulnerabilities across casinos, online gaming and gambling platforms, including their payment channels and links to illegal operators.

As services become more digital, interconnected and cross-border, the FATF warns that money laundering, terrorist financing and proliferation financing risks continue to emerge. Payment methods commonly used in the sector, including cash, e-wallets, mobile money and virtual assets, are singled out as particularly vulnerable to abuse.

Gaming platforms also depend on a broad network of supporting services, such as social media platforms and digital marketplaces, which may fall outside existing regulatory frameworks. This creates additional opportunities for criminals to exploit gaps in oversight.

The FATF also points to inconsistencies in regulatory approaches across jurisdictions. These differences can hinder information-sharing between public and private sector stakeholders and obstruct effective international cooperation.

To help entities detect and mitigate these risks, the FATF has introduced new risk indicators. These include the use of multiple accounts and payment methods under different identities, inconsistencies between customer and payment details, and suspicious identity documentation.

Other indicators cover criminal links between gaming operators or beneficial owners, including involvement in cyber-enabled fraud and organised crime. Unusual betting and transaction patterns, as well as complex ownership structures designed to conceal beneficial ownership, are also flagged.

For Malta's iGaming industry, the implications are significant. Licensed operators will need to review their compliance frameworks against these new indicators, particularly around customer due diligence, transaction monitoring and beneficial ownership transparency.

The FIAU has made the full report available on its website under the 'FATF' tab, as well as on the FATF's own site. Operators should treat this as a clear signal that regulatory expectations are tightening, and that proactive risk assessment is no longer optional.