The Top 10  Most Difficult Countries for Identity Verification

The Top 10  Most Difficult Countries for Identity Verification

Download Report

    n-img-roi-cross

    Before You Go, Schedule Your Free Demo Today

    Valid Invalid number


    Note: Fields marked with an asterisk(*) are mandatory.

    n-exit-img-roi-cross

    Thank you for your demo request

    We appreciate your interest and look forward to discussing how our solution can meet your needs. Expect to hear from us shortly with scheduling details.

    Close

    The Vicious Cycle of Money Laundering in the Gambling Industry

    Money launderers opt for various channels to obscure the origins of their illegally obtained funds including investment in digital assets, real estate, and the formation of offshore companies. Likewise, online gambling platforms also provide opportunities for money laundering to the rich and powerful. Compared to other mediums for channeling illicit money, the gambling sector makes it relatively easier for criminals to dodge the bullet of AML compliance measures. 

    The commonly perceived method of money laundering is the input of dirty money into gambling accounts and the output in the form of clean cash. But that’s just the tip of the iceberg, as various payment methods including crypto are now being used for adding credits to accounts for online gambling. Although identity verification is required along with bank account numbers while opening up gambling accounts, the variety of payment methods for depositing money for gambling makes the industry susceptible to financial crime.

    On June 7, casino owners from five major cities of Australia were called for a formal investigation which included Crown Resorts, Star Entertainment Group, SkyCity Entertainment Group. The National Australia Bank (NAB) investigation found that Crown Resorts had been“facilitating money laundering, exposing staff to the risk of detention in a foreign jurisdiction and pursuing commercial relationships with individuals” in connection with criminals in other cities.

    gambling

    Major Risk Factors in the Gambling Sector

    Clearly, AML regulations are not addressed by the gambling industry in the same way as financial institutions, which is indicated by the record-breaking penalties faced by casinos. Although various jurisdictions in the UK require casinos to implement sufficient AML solutions, a crackdown at the end of 2019 cost online casinos a staggering £8.7 million. Furthermore, the US Bank Secrecy Act (BSA) requires casinos to adhere to compliance measures. The Department of Treasury of FinCEN (Financial Crimes Enforcement Network) issued guidelines back in 2010 regarding AML compliance in the gambling sector.

    The common red flags that point towards money laundering activities include patterns of inconsistency in spending amounts and sudden increases in income. That being said, money launderers also go as far as utilizing gambling accounts managed by illegal service providers to stay undetected. Therefore, gambling operators must incorporate appropriate transaction checks not only for the sake of compliance, but to protect their business from being maligned by criminals. Moreover, money laundering risks run deep into the gambling system to affect business-to-business relationships as well as collaborations with third parties. Instances of money laundering have the potential to dispossess the casino of its business partners in addition to hefty compliance fines.

    Mounting Regulatory Pressure 

    Gambling operators are obliged by the Proceeds of Crime Act 2002 (POCA) to stay vigilant for activities involving illegally obtained money. Those gambling operators that have been issued operating licenses by the Gambling Commission, including online platforms without employees, have a duty to implement preventive measures against money laundering and ensure that their operations are compliant with the law. In 2019, there were over 5,000 Suspicious Activity Reports (SARs) to FinCEN, with the highest number of “minimal Gaming with large transactions” cases. The relatively less common red flags include transactions below the CTR threshold, multiple players working together to manipulate the game, unknown sources of chips, and cancelation of transactions to avoid suspicion.

    Casinos were issued a warning by FinCEN’s director at a conference earlier this year regarding the reduction of compliance budget to reduce overall working costs. Labeling this as a national security issue, director Kenneth Blanco said, 

    “so it concerns me when I hear about some compliance budgets being cut by casinos looking to trim costs and retain gamblers. To be clear—we take the culture of compliance seriously. This is a national security issue: not something to be taken lightly—and we will not take it lightly.”

    The financial regulator also added, “FinCEN is continually looking at compliance across all financial institutions and will not hesitate to act when it identifies financial institutions that violate the BSA. It is also important to note that not all enforcement actions are public—FinCEN often closes cases with warning letters sent to financial institutions or refers cases to our delegated examiners to conduct additional examinations.” FinCEN also encourages the integration of technologically enhanced solutions in the existing AML compliance programs.“Sports betting, and other mobile gaming services run through your casino, are no different than other products and services. FinCEN expects that your casino or card club is monitoring your sports betting programs for potentially suspicious activity. This includes offering sports betting through a mobile app.”

    The regulatory pressure on the gambling industry is not just from FinCEN, as the Gambling Commission in the UK has penalized casinos with amounts of upto $16 million for failure to prevent money laundering. Also, Canada’s financial watchdog FINTRAC has issued guidance on money laundering and terrorism financing indicators. With this list of ML/TF indicators, FINTRAC aims to assist the gambling sector to comply with financial regulations like the Proceeds of Crime (money laundering) and Terrorist Financing Act (PCMLTFA).

    What Online Gambling Operators Must do

    In September 2020, the UK took initiatives for spreading awareness about the risks of online gambling and made it compulsory to teach this in schools. The same applies to online casinos that must make efforts to raise awareness among their players about the hazards of financial crime through online gambling. Additionally, gambling operators must avoid becoming victims of money laundering scams and abide by AML/CFT standards. This is only possible if online gambling platforms disclose complete details of any event involving high-risk individuals or businesses.

    Money launderers use various methods to steer clear of regulatory measures in the gambling sector such as player-to-player transfer of money. Bad actors also make use of legitimate business entities such as gambling operators to obscure the origin of the illegally acquired money that they gamble with. This process ultimately provides them with legitimate money that can be deposited in real accounts. To counter these financial crimes, online gambling operators are encouraged to implement effective strategies for AML compliance. This includes defining their measures for detection of suspicious transactions, risk analysis, and reporting of financial crimes like money laundering and terrorism financing. Gambling is an industry where collecting simple names and numbers does not get the job done, which is why AI-based AML Screening solutions are essential. 

    Online gambling operators must regularly report to the National Crime Agency (NCA) through the designated officials, as casinos often face penalties for assisting money launderers here and there. Casino employees including cash handlers must be aware of AML compliance guidelines and direct their efforts towards the detection and immediate reporting of suspicious amounts of high-risk entities.

    What Shufti Offers

    The online gambling industry falls under the same AML/CFT regulations as other financial institutions, but the same cannot be said about the implementation of risk analysis techniques and transaction monitoring. Shufti offers AI-driven identity verification services to enable businesses to revamp their compliance measures – and that’s not all, as Shufti’s AML solution allows online gambling platforms to perform screening of their customers against 1700+ global watchlists.

    Want to know more about AML compliance?

    Related Posts

    Blog

    What is an OCR Screening and How Does it Work?

    In our digital environment, where automated technology has already taken over corporate processes...

    What is an OCR Screening and How Does it Work? Explore More

    Blog

    July 2023 Recap: Major Compliance Events and How AML Verification Can Help

    Anti-Money Laundering (AML) violations pose a substantial and concerning threat to the reliabilit...

    July 2023 Recap: Major Compliance Events and How AML Verification Can Help Explore More

    Blog

    AML Compliance in the UK’s Financial Sector – What Shufti Offers

    The UK is known in the global financial paradigm for being both a financial hub and the dirty mon...

    AML Compliance in the UK’s Financial Sector – What Shufti Offers Explore More

    Blog

    AML/CFT Regulations of Hong Kong: Paper Over Cracks?

    On September 15, 2021, Hong Kong’s Securities and Futures Commission issued consultation conclusi...

    AML/CFT Regulations of Hong Kong: Paper Over Cracks? Explore More

    Blog

    A Brief Overview of KYC Requirements for Foreign Exchanges in EMEA

    The forex industry is recognizable for being a dynamic and profitable platform due to its high li...

    A Brief Overview of KYC Requirements for Foreign Exchanges in EMEA Explore More

    Blog

    The Top 10 Advantages of OCR for Business Owners

    In our current data-driven and digital world, many organisations struggle with vast quantities of...

    The Top 10 Advantages of OCR for Business Owners Explore More

    Blog

    Understanding Digital Identity

    What is Digital Identity? In the digital world, your identity is made up of your p...

    Understanding Digital Identity Explore More

    Blog

    Jobs in the frame for money laundering

    How banks can detect money mules? Remote jobs are trending but not every job is legitimate. Some ...

    Jobs in the frame for money laundering Explore More

    Blog

    On-Premises Identity Verification – A Solution to Prevent Data Breaches

    From virtual modes of communication to digitised solutions for operating efficiently, the perks o...

    On-Premises Identity Verification – A Solution to Prevent Data Breaches Explore More

    Blog

    Intelligent Character Recognition: How it Drives the Industry with a Breeze

    Data is the nucleus of any business and how efficiently it is processed is the key to digital tra...

    Intelligent Character Recognition: How it Drives the Industry with a Breeze Explore More

    Blog

    UAE’s Targeted Financial Sanctions (TFS) – How Shufti Can Help Ensure AML Compliance

    Money laundering has always remained a huge challenge for global economies, and all the major jur...

    UAE’s Targeted Financial Sanctions (TFS) – How Shufti Can Help Ensure AML Compliance Explore More

    Blog, Financial Crime / AML

    Impact of Regulatory Scrutiny & AML Compliance in Real Estate

    Anti Money Laundering (AML): Criminals around the globe are targeting real estate to launder the ...

    Impact of Regulatory Scrutiny & AML Compliance in Real Estate Explore More

    Blog

    Securing Mobility as a Service (MaaS) with Shufti’s Digital Identity Verification Solution

    The transport industry is on the verge of significant disruption, with new emerging technologies,...

    Securing Mobility as a Service (MaaS) with Shufti’s Digital Identity Verification Solution Explore More

    Blog

    Fight Fraud Proactively and Reduce Fake Customer Accounts With Shufti’s AI-powered ID Document Forgery Detection

    Bank statements, land documents, and social security checks are frequently forged. Document forge...

    Fight Fraud Proactively and Reduce Fake Customer Accounts With Shufti’s AI-powered ID Document Forgery Detection Explore More

    Blog

    Blockchain and Identity Theft: Potential Challenges and how to Tackle Them

    Blockchain has become increasingly popular because of its potential to provide secure transaction...

    Blockchain and Identity Theft: Potential Challenges and how to Tackle Them Explore More

    Blog

    e-IDV | Combatting Fraud in a Remote World

    Know Your Customer (KYC) is a method to identify and verify clients’ true identities and re...

    e-IDV | Combatting Fraud in a Remote World Explore More

    Blog

    How to protect your online gaming platform from ID frauds?

    Gone are the days when online gaming was only restricted to LAN parties. With the development of ...

    How to protect your online gaming platform from ID frauds? Explore More

    Blog

    Online Dating Scams – ID Verification Solution to the Rescue

    COVID-19 exposures and its associated risks with today’s in-person meetups and traditional ...

    Online Dating Scams – ID Verification Solution to the Rescue Explore More

    Blog

    A Brief Insight into Safe Havens for Russian Oligarchs

    The recent Russia-Ukraine conflict has sparked the West to impose sanctions targeting the Russian...

    A Brief Insight into Safe Havens for Russian Oligarchs Explore More

    Blog

    KYC Isn’t Enough: Get Ready for the Future of Verification

    Over the past few years, companies have been looking for more sophisticated identity verification...

    KYC Isn’t Enough: Get Ready for the Future of Verification Explore More

    Blog

    NFC Verification – Securing Large-scale Events from Frauds

    Large-scale events are a great way for imposters to execute their illicit plans. Data breaches, m...

    NFC Verification – Securing Large-scale Events from Frauds Explore More

    Blog

    How E-KYC is Overcoming the Hurdles of Financial Inclusion

    The challenges associated with the global pandemic have risen at a bewildering speed and yet ther...

    How E-KYC is Overcoming the Hurdles of  Financial Inclusion Explore More

    Blog

    How to Protect Yourself From Cyber Crime in the Holiday Season?

    Most people around the world do the majority of their shopping during the holiday season. Accordi...

    How to Protect Yourself From Cyber Crime in the Holiday Season? Explore More

    Blog

    Initial Exchange Offerings (IEOs) – A Detailed Insight

    The advent of the Crypto industry brought decentralized and innovative fundraising ways. One of t...

    Initial Exchange Offerings (IEOs) – A Detailed Insight 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

    Know Your Patient – Balancing Security, Customer Experience and Compliance in the Healthcare Sector

    As the healthcare industry continues to offer life-critical services while making efforts to impr...

    Know Your Patient – Balancing Security, Customer Experience and Compliance  in the Healthcare Sector Explore More

    Blog

    Money Laundering Through Cryptocurrency: Red Flags and AML Risks

    As the use of virtual assets becomes widespread, crypto firms have a major dilemma to deal with &...

    Money Laundering Through Cryptocurrency: Red Flags and AML Risks Explore More

    Blog

    Fighting Prevailing Crimes in Gaming Industry with Shufti’s Anti-Money Laundering Screening Solution

    Modern gaming is the most recent evolution of this industry that has become the attraction of glo...

    Fighting Prevailing Crimes in Gaming Industry with Shufti’s Anti-Money Laundering Screening Solution Explore More

    Blog

    The Most Common Cryptocurrency Scams and the Role of e-IDV

    Cybercrimes and scams are rampant across the digital space, and cryptocurrency is no different. W...

    The Most Common Cryptocurrency Scams and the Role of e-IDV Explore More

    Blog, Online Marketplace

    Benefits of KYC services for Money Services Operators

    Money service operators are at the forefront of international financial system as they help with ...

    Benefits of KYC services for Money Services Operators Explore More

    Blog, Online Marketplace

    Document Verification Services for a Secure Freelance Platform

    Picture this you have recently started a freelance website you have marketed it properly and foll...

    Document Verification Services for a Secure Freelance Platform Explore More

    Blog

    De-Risking and Anti-Money Laundering Screening – How Shufti Can Help FIs

    Every firm providing financial services must stay put with the existing compliance and follow new...

    De-Risking and Anti-Money Laundering Screening – How Shufti Can Help FIs Explore More

    Blog

    Enhancing the Effectiveness of KYC Checks with Shufti’s Forensic Document Verification

    With emerging technologies and rapid digitization, identity fraud has become quite common, raisin...

    Enhancing the Effectiveness of KYC Checks with Shufti’s Forensic Document Verification 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

    Adverse Media Screening Requirements and Why Do FIs Need It?

    The financial services industry is under a lot of regulatory requirements recently, and for all t...

    Adverse Media Screening Requirements and Why Do FIs Need It? Explore More

    Blog

    Identity verification for fair and free US elections amid COVID-19

    US Elections 2020 is the talk of the town these days. But with COVID-19 pandemic going on how wil...

    Identity verification for fair and free US elections amid COVID-19 Explore More

    Blog

    Halloween Scams – Watching Out for Tricks, Identity Fraud, and Financial Crime

    Halloween is one of the most awaited and celebrated events in a large number of countries across ...

    Halloween Scams – Watching Out for Tricks, Identity Fraud, and Financial Crime Explore More

    Blog, Online Marketplace

    How AI is Transforming Fraud Prevention in the Healthcare Industry

    KYC For HealthCare: Fraud is so common that there is hardly any industry that hasn’t had to bear ...

    How AI is Transforming Fraud Prevention in the Healthcare Industry 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

    Securing Mobility as a Service (MaaS) with Shufti’s Digital Identity Verification Solution

    The transport industry is on the verge of significant disruption, with new emerging technologies,...

    Securing Mobility as a Service (MaaS) with Shufti’s Digital Identity Verification Solution Explore More

    Blog

    Age Verification: Use Cases, Significance and Regulations

    This pillar post talks about the significance of digital age verification, how it works, what are...

    Age Verification: Use Cases, Significance and Regulations Explore More

    Blog

    New KYC Regime for the UK, US, and Australia – What’s in it for Financial Institutions?

    Financial institutions are known for getting their reputation maligned due to crimes like identit...

    New KYC Regime for the UK, US, and Australia – What’s in it for Financial Institutions? Explore More

    Blog

    Evaluating the Potential of Digital ID Verification Systems in 2022

    Identity fraud and synthetic identities are skyrocketing and collectively account for a loss of ​...

    Evaluating the Potential of Digital ID Verification Systems in 2022 Explore More

    Blog, Identity & KYC

    Fathoming Financial Inclusion, Innovative KYC Solutions, and Integrity

    Identity – ensures active participation of an individual in social, political and economic ...

    Fathoming Financial Inclusion, Innovative KYC Solutions, and Integrity Explore More

    Blog

    Address Verification: Types, Benefits, and Best Practices

    Improving customer service and combating fraud frequently requires swiftly gathering and confirmi...

    Address Verification: Types, Benefits, and Best Practices 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

    Shahid Hanif’s Take on Shufti’s Five-Year Journey of Winning the Fight Against Fraud

    The financial sector constantly faces new and emerging challenges in fighting sophisticated fraud...

    Shahid Hanif’s Take on Shufti’s Five-Year Journey of Winning the Fight Against Fraud Explore More

    Blog, Business Technology

    Fintech Trends – Unlocking the Unmapped Potential

    Fintech, a blend of two words Finance and Technology, represents the collision of two worlds that...

    Fintech Trends – Unlocking the Unmapped Potential Explore More

    Blog

    Strengthening digital businesses with online age verification

    It is projected that by the end of 2021, 2.4 billion will buy products and services online, up 46...

    Strengthening digital businesses with online age verification 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, Financial Crime / AML

    Challenges of AML Compliance under FinCEN

    AML Compliance for US based Cryptocurrency companies has been tightened by Financial Crimes Enfor...

    Challenges of AML Compliance under FinCEN Explore More

    Blog

    How Deepfakes Deceptions are Affecting Businesses

    The word deep fake comes from the terms “deep learning” and “fake,” and is a type of artificial i...

    How Deepfakes Deceptions are Affecting Businesses Explore More

    Blog, Fraud Prevention

    Looking for Online Fraud Prevention: Here Is What You Can Do

    In an increasingly digital world, it is extremely important for online businesses to identify fra...

    Looking for Online Fraud Prevention: Here Is What You Can Do Explore More

    Blog

    How Optical Character Recognition Improves the Process of Identity Verification for Businesses

    Evolving technologies have created a competitive market where every business strives to optimize ...

    How Optical Character Recognition Improves the Process of Identity Verification for Businesses Explore More

    Blog

    The Top 10 Benefits of the Know Your Customer Lifecycle

    In this digital age, where transactions occur remotely and identity theft is rising, establishing...

    The Top 10 Benefits of the Know Your Customer Lifecycle 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

    Digital KYC to Trace and Tackle High-Risk Customers

    Customers are the assets and building blocks of any business. Customers are responsible for takin...

    Digital KYC to Trace and Tackle High-Risk Customers Explore More

    Blog, Fraud Prevention

    Fraud Prevention through Secure Payment Processes

    Here’s a question, why do people always say things like  “the good days”? The fact is a number of...

    Fraud Prevention through Secure Payment Processes Explore More

    Blog

    Addressing Business Challenges Using OCR Scanner

    OCR text recognition is similar to how humans process and store information through reading. The ...

    Addressing Business Challenges Using OCR Scanner Explore More

    Blog

    Know Your Investor | Simplify the Onboarding Process

    Businesses at any stage need to onboard credible partners and investors who bring in capital and ...

    Know Your Investor | Simplify the Onboarding Process Explore More

    Blog

    Anti-Money Laundering (AML) Solution- Eradicating Money laundering and Securing Ride-Hailing Services

    Due to the coronavirus global pandemic, the ride-hailing sector continue to grapple. As per new e...

    Anti-Money Laundering (AML) Solution- Eradicating Money laundering and Securing Ride-Hailing Services Explore More

    Blog

    Securing Business Operations with Address Verification in 2024

    A key component of enhancing customer service and reducing fraud is gathering and validating addr...

    Securing Business Operations with Address Verification in 2024 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 Identity Verification: 5 Trends to Expect in 2021

    The boom in digitisation forced businesses to opt for digital means of operations. Online busines...

    Online Identity Verification: 5 Trends to Expect in 2021 Explore More

    Blog

    How Can Businesses Detect Arbitrage Sports Betting?

    Various gamblers have investigated and exploited potential weaknesses in betting markets for mill...

    How Can Businesses Detect Arbitrage Sports Betting? Explore More

    Blog

    Digital Wallet Fraud | How AML Screening Solution Can Help

    Digital wallets are becoming everyone’s go-to transaction method and the total number of e-wallet...

    Digital Wallet Fraud | How AML Screening Solution Can Help Explore More

    Blog

    Biometrics Bucking the Trend of KYP in Healthcare

    Over the last few years, biometric technology is deeply entrenched in various commercial marketpl...

    Biometrics Bucking the Trend of KYP in Healthcare Explore More

    Blog

    Crypto 2021: The Rapidly Emerging Context of Virtual Currencies

    Cryptocurrency is in the limelight since the advent of Bitcoin in 2009. Investors like Tesla Inc....

    Crypto 2021: The Rapidly Emerging Context of Virtual Currencies Explore More

    Blog, Identity & KYC

    Fathoming Financial Inclusion, Innovative KYC Solutions, and Integrity

    Identity – ensures active participation of an individual in social, political and economic ...

    Fathoming Financial Inclusion, Innovative KYC Solutions, and Integrity Explore More

    Blog, Fraud Prevention

    Identity Theft Frauds – How can you stay a step ahead?

    Identity theft is ‘a hot potato’ these days. Every day we come across news of online fraud that h...

    Identity Theft Frauds – How can you stay a step ahead? Explore More

    Blog

    AML Compliance – How to Steer Clear of Cryptocurrency Crimes

    Bitcoin, Ethereum, Dogecoin, and Tether along with thousands of other cryptocurrencies are rising...

    AML Compliance – How to Steer Clear of Cryptocurrency Crimes Explore More

    Blog

    Know Your Driver – Urgency of Identity Verification for Mobility service Providers

    Scams have been at the forefront whenever a new tool is made available. The same goes for ride-sh...

    Know Your Driver – Urgency of Identity Verification for Mobility service Providers 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