The Top 10  Most Difficult Countries for Identity Verification

The Top 10  Most Difficult Countries for Identity Verification

Download Report

AML Screening for Online Gambling Platforms – Placing the Bets on Regulatory Compliance

b-img-aml

With technology evolving every day, online gambling is one of the sectors that has revolutionized altogether. The trend of remote gambling witnessed a huge hike during the pandemic due to the closure of brick-and-mortar casinos. In 2020, online gambling revenue was $66.67 billion and it is expected to reach $100 billion in 2026. It was observed in a survey that 96% of the gamblers preferred to gamble while sitting in their homes.

The large stakes of money involved in online gambling have made it a soft target for financial criminals like money launderers and terror financiers. Bad actors are exploiting online gambling platforms to convert their illicit funds into legal ones through several money laundering techniques. It has become imperative for online casinos to implement AML compliance measures to curb all such activities from the platform.

Money Laundering and Terror Financing Risks in Online Gambling

Global digitization has helped the online gambling industry to use digital platforms for its operations. Currently, online casinos are providing a myriad of services including; sports betting, lottery, video games, and many others. Although all these services are a huge source of entertainment and earnings for gamblers, they have also become safe havens for money launderers to carry out heinous crimes like terror financing and investment fraud.

It is estimated that 17% of the world population is using online gambling platforms and the trend is increasing every year. Moreover, it has become a need for all online gambling platforms to introduce digital payment options to facilitate global players. Due to this high saturation and digital payment methods in remote gambling, it has become a gruesome task for online casinos to identify criminals and keep them away from the system. Money launderers are using a variety of techniques like buying casino money through illicit funds, Fixed-Odds Betting Terminals (FOBTs), or investments in online casinos to convert black money into legitimate cash.

Conversion of illegal funds to legal ones is not the only issue, but money laundering is being used for terror financing and promoting terrorism in the world. All the countries and financial watchdogs like Financial Action Task Force (FATF), Interpol are working tirelessly to eradicate money laundering from online gambling. In UK, all the gambling companies are working under Proceed of Crime Act (POCA) while in US, Financial Crimes Enforcement Network (FinCen) is the regulatory authority that is responsible for enforcing AML compliance in online gaming. The FATF has also issued guidelines to curb ML/TF through online gambling and several online casinos have been fined or banned for not following guidelines.

Online Gaming Company fined by Maltese Financial Watchdog

In January 2022, Malta’s Financial Intelligence Analysis Unit (FIAU) fined “Online Amusement Solution Limited” with an amount of €386,567. FIAU mentioned in their statement that online gaming company has been penalized for not following 11 AML regulations.

According to FIAU, there were several illegal investments made by gamblers that were not regulated through AML measures by the company.  Investigation took three years and every aspect of the case was observed in the light of FATF guidelines.

Annexio Limited & Rank Digital Gaming in UK fined for Money Laundering

UK gambling commission has fined Annexio Limited and Rank Digital Gaming Limited for breaching AML regulations. Both the companies were fined heavily with the amounts of £612,000 and £700,557 respectively.

Commission has released an official statement mentioning that both online casinos were not following anti-money laundering and counter-terror financing regulations. The Director of the commission further warned all online gambling platforms to adhere to AML laws, companies failing to stay put with AML/CFT standards may face hefty fines, reputational damages, and strict sanctions.

AML Compliance for Online Gambling Industry

Online gambling was introduced for entertainment and earnings purposes alone but it has become a soft target for money launderers and terror financiers. Not only the money launderers but a large number of gambling platforms are equally responsible for these financial crimes. Lenient T&Cs and loopholes in their existing AML system are encouraging criminals to take advantage of them. It is need of the hour to mitigate these activities by following FATF and other local agencies’ guidelines

All the players on-boarding the platforms should be screened through effective Know Your Customer (KYC) measures. The global watchdogs have assembled various sanctions and PEP lists that should be taken into account to adopt a risk-based approach. Providing awareness regarding financial crimes involved in online gambling can also serve the purpose as a lot of online casino operators do not even know about AML regulations.

b-info-money-laund

Global Regulations for Curbing Money Laundering in Online Gambling

Since 9/11, all the responsible countries and international institutions have declared laundered money to be the primary source of terror financing. The rising concerns of terrorism have compelled AML regulators to put stringent measures to eliminate all the bad actors.

FATF

Financial Action Task Force (FATF) has termed online casinos highly vulnerable to money laundering and terror financing. FATF has further suggested all gambling platforms implement Risk Based Approach (RBA) to combat criminal activities.

FATF has also issued detailed guidelines for all the countries which they need to follow to restrict money launderers from abusing loopholes in system. FATF has highlighted the vulnerabilities in online gambling which could further help institutions implement AML/CFT compliance measures.

Malta Gaming Authority

Malta is considered home to online gambling, which has compelled the government to have Malta Gaming Authority (MGA) to regulate online casinos. A large number of parameters have been set by MGA based on which they provide licenses to online gaming platforms. Malta Gaming Authority reserves all the rights to fine or ban any online casino failing to comply with regulations.

MGA has made it compulsory for online gambling operators to have stringent measures for fraud management, Know Your Client (KYC), and AML. All gambling operations are monitored to build a secure environment and keep money launderers away.

National Betting Authority (NBA) Cyprus

Cyprus is another country where all types of on-site and online gambling activities are considered legal. National Betting Authority (NBA) was established with the aim of curbing money laundering practices in online casinos. The betting law of 2019 contains all legal rules which are key to preventing money laundering, terror financing, taxation, and consumer protection.

What Shufti Offers

Shufti’s advanced AML screening solution is powered by thousands of AI algorithms that can help online gambling platforms stay compliant with AML/CFT regulations. Online casinos can easily monitor and report money laundering attempts by incorporating AML solutions.

Curbing financial crimes, particularly terror financing and money laundering will not only boost revenue of the industry but will also make them credible. Shufti’s AML services can screen gamblers against 1700+ sanction lists and provide results with 98.67% accuracy in a matter of seconds.

Want to know more about AML/KYC solutions for the online gambling industry?

Talk to us

Related Posts

Blog

How the US Aims to Fight Financial Crimes and Global Corruption in 2022

2022 is looking like the year of change in the USA when it comes to combating illicit financial c...

How the US Aims to Fight Financial Crimes and Global Corruption in 2022 Explore More

Blog

5-Steps to Improve Customer Due Diligence Process

The digital age has witnessed a new wave of financial fraud. It is estimated that $4.7 trillion o...

5-Steps to Improve Customer Due Diligence Process Explore More

Blog

Forex | The Use of Identity Verification

In addition to safeguarding clients, forex brokers have legal and regulatory obligations to uphol...

Forex | The Use of Identity Verification Explore More

Blog

Cross-Border KYC Compliance | Understanding and Overcoming the Challenges

To handle money laundering incidents and rising regulatory pressure, the banking industry benefit...

Cross-Border KYC Compliance | Understanding and Overcoming the Challenges Explore More

Blog, Identity & KYC

Digital ID Verification

  The Current Situation Digital ID Verification is the key to securing your business in thes...

Digital ID Verification Explore More

Blog, Fraud Prevention

4 Fraud prevention tips that you must follow this Holiday Season

The holiday season is around the corner and it is the time of the year when online shopping and m...

4 Fraud prevention tips that you must follow this Holiday Season Explore More

Blog, Fraud Prevention

Credit Card Frauds- How Can You Prevent It?

Ever since credit cards were introduced, credit card fraud has been elevating. One needs to stay ...

Credit Card Frauds- How Can You Prevent It? Explore More

Blog

Address Verification: The Cornerstone of Elevating Customer Experience

Today’s highly emerging technology is changing the way consumers shop online products. Given the ...

Address Verification: The Cornerstone of Elevating Customer Experience Explore More

Blog

A Guide to Understanding KYC in Banking

2022 has witnessed a rise in the number of fraudulent cases by 18% compared to 2021, damaging bus...

A Guide to Understanding KYC in Banking Explore More

Blog

Securing Digital Landscape with Electronic Identity Verification Services in 2023

With a surge in identity document forgery, the likelihood of onboarding a criminal has grown subs...

Securing Digital Landscape with Electronic Identity Verification Services in 2023 Explore More

Blog

Shufti’s Ongoing AML Solution to Prevent Transaction Laundering

Online financial criminals are always finding newer ways to exploit financial infrastructures in ...

Shufti’s Ongoing AML Solution to Prevent Transaction Laundering Explore More

Blog

Five Things you Need to Know About Shufti’s Digital Identity Verification

The growing digital fraud, stringent KYC and AML regulations put in place, and the increasing bur...

Five Things you Need to Know About Shufti’s Digital Identity Verification Explore More

Blog

A Fintech’s Journey to 100% Compliance and Rapid Growth

My EU Pay, a specialist payment institution serving hundreds of business customers in the U.K. an...

A Fintech’s Journey to 100% Compliance and Rapid Growth Explore More

Blog

KYC in banking: How American banks can fight identity thieves?

In the present globalized, fast-evolving sphere, revolutionizing KYC (Know Your Customer) is cruc...

KYC in banking: How American banks can fight identity thieves? Explore More

Blog

Secure Your Digital Presence | Combat Transaction Fraud and Cyberthreats with IDV

Financial crimes, especially payment and transaction fraud, have seen a massive surge in recent y...

Secure Your Digital Presence | Combat Transaction Fraud and Cyberthreats with IDV Explore More

Blog, Financial Crime / AML

3 Stages of money laundering – How AML screening guards your business

The United Nations Office on Drugs and Crime found that 2 to 5% of global GDP is laundered every ...

3 Stages of money laundering – How AML screening guards your business Explore More

Blog

5 Frauds in the Education Sector and How They Can be Prevented

Educational institutions have become an attractive target for cybercrime attacks in recent years....

5 Frauds in the Education Sector and How They Can be Prevented Explore More

Blog

Identity verification in freelancing- no more smoke and mirrors

Freelancing platforms are rapidly growing. In 2017, around 57 million Americans were freelancing ...

Identity verification in freelancing- no more smoke and mirrors Explore More

Blog, Financial Crime / AML

Global AML Regimes – Tightening Reins on Money Launderers

Money laundering is a global menace. Money laundering and terrorist financing are the major targe...

Global AML Regimes – Tightening Reins on Money Launderers Explore More

Blog

Digital COVID Certificate Verification: Prevalent Problems and Viable Solutions

Following the rollout of viable vaccines to combat COVID-19, the prospects of normalcy are on the...

Digital COVID Certificate Verification: Prevalent Problems and Viable Solutions Explore More

Blog

Intelligent Character Recognition (ICR) Software – One step ahead of OCR

What is ICR? Intelligent Character Recognition (ICR) is an extended technology of Optical...

Intelligent Character Recognition (ICR) Software – One step ahead of OCR Explore More

Biometric Technology, Blog, Fraud Prevention, Identity & KYC

Multi-factor Authentication is being defeated’ warns FBI

For years, online businesses and organizations have been adopting various strategies and defense ...

Multi-factor Authentication is being defeated’ warns FBI Explore More

Blog

Enhance Time Efficiency with Shufti’s KYC Solution

The Past Quick and secure e-KYC verification might not have been of importance in the days prior ...

Enhance Time Efficiency with Shufti’s KYC Solution Explore More

Blog

Cryptocurrency Market and Financial Crimes: How to Handle Transaction Monitoring

The adoption of cryptocurrencies by both individuals and businesses has exploded in the last 12 m...

Cryptocurrency Market and Financial Crimes: How to Handle Transaction Monitoring Explore More

Blog

AML Verification Services: Fighting Back Financial Crimes in 2023

The Covid-19 outbreak has increased reliance on eCommerce and digital banking — cultivating a lus...

AML Verification Services: Fighting Back Financial Crimes in 2023 Explore More

Blog, Identity & KYC, Online Marketplace

Age Verification – Does Your Business Need It?

Several businesses are unaware of the significance that age verification holds for their business...

Age Verification –  Does Your Business Need It? Explore More

Blog, Online Marketplace

Industrial significance of KYC / AML Compliance in 2019

As the type and amount of fraudulent activities have increased over the years, governments and re...

Industrial significance of KYC / AML Compliance in 2019 Explore More

Blog

Risk Assessment: Building Trust in Crypto Exchanges

Other than following AML and KYC laws, crypto exchanges have a huge responsibility on their shoul...

Risk Assessment: Building Trust in Crypto Exchanges Explore More

Blog

Why Digital Identity Verification is Booming – A Detailed Insight

According to the report “Digital Identity & Document Verification Market & Technology Ana...

Why Digital Identity Verification is Booming – A Detailed Insight Explore More

Blog

Enhanced Due Diligence Checks | The Art of Mitigating Risks Associated with Third-Parties

For multinational businesses, reliance on external third-party vendors is crucial. However, failu...

Enhanced Due Diligence Checks | The Art of Mitigating Risks Associated with Third-Parties Explore More

Blog

New Regulatory Initiatives to Revamp the US Crypto Landscape

With digital currencies gaining prominence, the US financial landscape has seen major transformat...

New Regulatory Initiatives to Revamp the US Crypto Landscape Explore More

Blog

5 Key Market Trends in Identity Verification

The year 2020 has caused a dramatic shift in the business industry and our way of living.  The si...

5 Key Market Trends in Identity Verification Explore More

Blog

KYC | Complete Guide to KYC Compliance & KYC Regulations 2021

Introduction to KYC or Know your customer Know your customer or KYC history dates back to 2001 in...

KYC | Complete Guide to KYC Compliance & KYC Regulations 2021 Explore More

Blog

Supplementing blockchain with KYC offers endless possibilities

While you may be tempted to think that decentralized and anonymous blockchains are safe because t...

Supplementing blockchain with KYC offers endless possibilities Explore More

Blog, Online Marketplace

KYC Services and AML Compliance Services for Forex Industry

Forex Industry stands to benefit a lot by incorporating KYC services in addition to AML Complianc...

KYC Services and AML Compliance Services for Forex Industry Explore More

Blog

Prevailing Crimes in Identity Verification – How Shufti’s Forensic Document Verification Can Help

Identity fraud has become quite prevalent in digital businesses which is not only affecting opera...

Prevailing Crimes in Identity Verification – How Shufti’s Forensic Document Verification Can Help Explore More

Blog

Metaverse and Meta Criminals – Is it Possible to Secure Identities with IDV?

Ever since Mark Zuckerberg changed Facebook’s name to Meta, the acronym “metaverse” has taken ove...

Metaverse and Meta Criminals – Is it Possible to Secure Identities with IDV? Explore More

Blog, Business Technology

Biometric Verification – Shaping the Future of Payments

Today’s world is no longer different from the science fiction world. With the advent of technolog...

Biometric Verification – Shaping the Future of Payments Explore More

Blog

The Evolution of Video KYC: Revolutionise the Fintech Industry

FinTech encompasses financial organisations’ use of computing and communications tools to b...

The Evolution of Video KYC: Revolutionise the Fintech Industry Explore More

Blog

Marketing Firms embracing KYC Services for Better service Delivery

Browsing through your Facebook newsfeed and you come across one of ‘Those’ friends – “Hey P...

Marketing Firms embracing KYC Services for Better service Delivery Explore More

Blog

E-Signature Verification | Why Businesses Should Consider Adopting It

Physical paperwork is a thing of the past now. It is a time and labour-intensive task that requir...

E-Signature Verification | Why Businesses Should Consider Adopting It Explore More

Blog

Prevailing Crimes in Identity Verification – How Shufti’s Forensic Document Verification Can Help

Identity fraud has become quite prevalent in digital businesses which is not only affecting opera...

Prevailing Crimes in Identity Verification – How Shufti’s Forensic Document Verification Can Help Explore More

Blog, Fraud Prevention

4 Fraud prevention tips that you must follow this Holiday Season

The holiday season is around the corner and it is the time of the year when online shopping and m...

4 Fraud prevention tips that you must follow this Holiday Season Explore More

Biometric Technology, Blog, Identity & KYC

ID Verification API – Smooth Integration With Online Systems

The financial services (FS) sector has the highest ever recorded abandonment rate of 83.6% amongs...

ID Verification API – Smooth Integration With Online Systems Explore More

Blog

Effectiveness of the UK’s Economic Crime Bill in Combating Financial Crime

The Russian invasion of Ukraine has resulted in a surge in financial crimes in the UK as Russian ...

Effectiveness of the UK’s Economic Crime Bill in Combating Financial Crime Explore More

Blog

The Trade-off Between Fraud Losses and Compliance Costs in the Banking Sector

The modern era’s demand for digital-first services in sectors ranging from e-commerce, online dat...

The Trade-off Between Fraud Losses and Compliance Costs in the Banking Sector Explore More

Blog, Business Technology

Identity Verification Fuels Growth of Ride Sharing Industry

The ride-sharing industry is growing at a huge pace. As per Orbi’s research, the ride-shari...

Identity Verification Fuels Growth of Ride Sharing Industry Explore More

Blog

A Deep Dive into Know Your Business Verification

Customer verification is essential for all businesses to onboard legitimate customers, but what a...

A Deep Dive into Know Your Business Verification Explore More

Blog

Swipe Right on Facial Verification for Secure Online Dating

In today’s COVID-ridden world, in-person dating is deemed very risky due to the spread of the vir...

Swipe Right on Facial Verification for Secure Online Dating Explore More

Blog, Online Marketplace

KYC Services and AML Compliance Services for Forex Industry

Forex Industry stands to benefit a lot by incorporating KYC services in addition to AML Complianc...

KYC Services and AML Compliance Services for Forex Industry Explore More

Blog, Online Marketplace

Verify ID For a Secure Travel Experience

Since we are using the Internet for a great many things including shopping to online booking of f...

Verify ID For a Secure Travel Experience Explore More

Blog, Identity & KYC

CRA Looking to Launch Digitally Secure Ways with Identity Verification Services

Canada Revenue Agency or CRA in collaboration with an identity verification service called Secure...

CRA Looking to Launch Digitally Secure Ways with Identity Verification Services Explore More

Blog

Dirty Funds & Tax Evasion – Can the Crypto Sector Be Safeguarded?

2021 has turned out to be another eventful year for the cryptocurrency sector. In just a span of ...

Dirty Funds & Tax Evasion – Can the Crypto Sector Be Safeguarded? Explore More

Blog

On-Premises vs Cloud Services – Two Sides of the Same Coin

With the advent of technology, industries are streamlining all their processes and ensuring highe...

On-Premises vs Cloud Services – Two Sides of the Same Coin Explore More

Blog

Red Flags to Detect Money Laundering in the Finance Sector

As the digital landscape continues to evolve at an exponential rate, so do our tools for fraud- d...

Red Flags to Detect Money Laundering in the Finance Sector Explore More

Blog

Shell Companies and Money Laundering: How to Combat Them?

Shell companies are notorious for all the right reasons. These entities often called ghost compan...

Shell Companies and Money Laundering: How to Combat Them? Explore More

Blog

Trade based money laundering – Challenges, detection and prevention

Back in 2006, Financial Action Task Force (FATF) emphasised on new measures and strategies for ba...

Trade based money laundering  – Challenges, detection and prevention Explore More

Blog

Transaction Screening: The Benefits and Challenges

Financial crimes are rising, wreaking havoc on organisations and individuals. The fraud rate has ...

Transaction Screening: The Benefits and Challenges Explore More

Blog

Digital ID Verification – Why is it Critical for Customer Experience?

Last year was all about lockdown and pandemic disrupting business operations to the very core. Th...

Digital ID Verification – Why is it Critical for Customer Experience? Explore More

Blog

The Expected No-Deal Brexit and AML/CFT Laws in the UK

The current prime minister of the UK Mr. Boris Johnson made a statement that the UK should be rea...

The Expected No-Deal Brexit and AML/CFT Laws in the UK Explore More

Blog

10 Frequently Asked Questions about Real-time Document Verification

As we’re propelled deeper into digital transformation, techniques employed by scammers are ...

10 Frequently Asked Questions about Real-time Document Verification Explore More

Blog

Securing Identities with Photo ID Verification

ID verification has seen unprecedented growth not only in the processes but also in the crime com...

Securing Identities with Photo ID Verification Explore More

Blog

Need for Identity Verification in Real Estate and Its Real-World Use Cases

The real estate industry is in dire need of identity verification processes. The reason being, th...

Need for Identity Verification in Real Estate and Its Real-World Use Cases Explore More

Blog

Identity Verification | A Complete Guide to Compliance and Risks

The United Nations says $2 trillion is laundered globally every year. Of that, less than 10% is d...

Identity Verification | A Complete Guide to Compliance and Risks Explore More

Blog

The Most Common Bank Scams and How e-IDV Can Help

Protecting customers against diverse types of fraud is a continual practice for banks and credit ...

The Most Common Bank Scams and How e-IDV Can Help Explore More

Blog

6 Industry Experts Share Their Thoughts on NFC ID Verification

Thanks to the growth of contactless transaction systems like Apple Pay, NFC is now a mainstream t...

6 Industry Experts Share Their Thoughts on NFC ID Verification Explore More

Blog

Know Your Donor – Securing NPOs and Charities Through KYD/AML Solution

Emerging technologies and growing digitization have increased financial crime risks in Non-Profit...

Know Your Donor – Securing NPOs and Charities Through KYD/AML Solution Explore More

Blog

AML Screening – Why Real Estate is an Easy Target for Money Launderers

The strong link between money laundering and the real estate industry is becoming a global concer...

AML Screening – Why Real Estate is an Easy Target for Money Launderers Explore More

Blog

A Comprehensive Guide to KYC and AML Regulations in the UK

The increasing number of financial crimes in the UK calls for stringent measures to safeguard the...

A Comprehensive Guide to KYC and AML Regulations in the UK Explore More

Blog

Fintech 2021 – A Brief Insight of Global KYC Regulations

Financial services are among the most heavily regulated sectors in the world, and the number one ...

Fintech 2021 – A Brief Insight of Global KYC Regulations Explore More

Blog

Warning Signs of ICO Scams and the Role of Identity Verification Service

If you have heard of Bitcoins and cryptocurrencies then you must have heard of ICOs or Initial Co...

Warning Signs of ICO Scams and the Role of Identity Verification Service Explore More

Blog

7 Fascinating Facts about Face Verification Technology

Technology is a fundamental part of our day-to-day lives, from checking the weather and connectin...

7 Fascinating Facts about Face Verification Technology Explore More

Take the next steps to better security.

Contact us

Get in touch with our experts. We'll help you find the perfect solution for your compliance and security needs.

Contact us

Request demo

Get free access to our platform and try our products today.

Get started