FATF Publishes New Risk Indicators Targeting Financial Crime Vulnerabilities in Gambling

The Financial Action Task Force (FATF) has published new risk indicators aimed at helping authorities and gambling industry participants identify financial crime threats linked to gaming and gambling activities, as reported by World Casino News.

The international watchdog said the growth of online gambling, cross-border platforms and digital payment options has created additional opportunities for criminals to misuse the sector. The analysis focused on risks connected with money laundering, terrorist financing and proliferation financing across casinos, gambling services and video gaming. The project collected information from more than 80 jurisdictions, alongside input from industry organisations and researchers. It represents FATF’s first detailed review of risks associated with online and illegal gambling.

FATF President Giles Thomson said in a press release: “Without robust safeguards, these sectors can be attractive gateways for fraudsters, professional money launderers and organised criminal networks. I urge all governments to take note of the risk indicators we have set out today, and put in place appropriate risk-based responses – from strengthening oversight and cracking down on illegal and offshore operators, to boosting international co-operation, and deepening public-private collaboration.”

Warning Signs Tied to Transactions, Customers and Business Structures

FATF identified illegal gambling as one of the most significant concerns. In some jurisdictions, illegal gambling markets are comparable in size to, or larger than, regulated markets. Unlicensed offshore operators can present themselves as legitimate while offering anonymity that attracts criminal actors.

The expansion of digital services has added complexity. Gambling platforms now rely on cash, e-wallets, mobile money and virtual assets. These enable rapid anonymous cross-border transfers and movement of value between forms.

Key indicators include criminals using platforms to transfer funds without meaningful bets, multiple smaller transactions to avoid detection, and unusually large or coordinated wagers where competition manipulation is suspected. Other signs encompass multiple accounts linked to different identities, payment details that do not match customer information, frequent use of virtual assets, repeated VPN use, fake account information, and ownership structures designed to hide beneficial owners.

The Regulatory Gaps That Demand Coordinated Action

Differences between national gambling regulations allow criminals and illegal operators to exploit gaps. Traditional casinos have faced risks from organised crime groups seeking ownership or influence. Online environments can increase those risks through complex ownership arrangements and international structures.

FATF recommended stronger licensing procedures, improved information sharing between public and private sectors, and closer international cooperation on online and illegal gambling activity. The new guidance provides practical support for regulators, law enforcement agencies and businesses to identify suspicious activity and strengthen responses.

This report makes clear that evolving payment technologies and offshore platforms will continue to test existing controls. Operators and authorities now face pressure to align their risk-based measures with these specific indicators before gaps widen further.

Reporting: World Casino News

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