The global anti-money laundering watchdog just put the online gambling industry on notice. The Financial Action Task Force released its first comprehensive analysis of money laundering and terrorist financing risks in the gaming and gambling sectors, drawing on data from more than 80 jurisdictions worldwide.
The report, which caps a year-long study, paints a picture of an industry where unlicensed, offshore platforms have become go-to infrastructure for criminals looking to clean dirty money. And the payment rails making it possible, from e-wallets to mobile money to virtual assets, are exactly the ones growing fastest.
What the FATF actually found
The core finding is straightforward: online gambling platforms are being exploited not just for laundering proceeds of crime, but also for terrorist financing and proliferation financing. The FATF introduced a new set of Anti-Money Laundering and Counter-Financing of Terrorism risk indicators designed to help regulators and operators spot suspicious behavior.
Some of the red flags are almost comically brazen. The report highlights cases where funds move through gambling platforms with no actual gambling taking place.
