UKGC re-assesses AML and CTF risks

Jake Graves December 6, 2023

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UKGC re-assesses AML and CTF risks

The UK Gambling Commission (UKGC) has increased the assessment of terrorism financing risks within the gambling industry from low to medium.

This change is based on the latest Money Laundering (ML) and Terrorism Financing (TF) risk assessment released by the commission.

This decision marks a significant shift since the 2020 evaluation, with the government aiming to provide a resource for the regulated gambling sector to enhance its risk frameworks.

UK licensees are mandated to ensure effective implementation and regular updates of their policies, procedures and controls.

Industry specifics

While the overall money laundering threat level in the gambling sector is low, variations in risk exist among different gaming activities.

Remote casino, betting and bingo activities are deemed to have high-risk levels, while products such as the National Lottery maintain a low-risk classification.

Terrorism financing risk, however, has elevated to medium level overall with a thorough re-evaluation by the UKGC deeming the prior low-classification insufficient in collaboration with counter-terrorism specialists.

Noteworthy adjustments within specific gaming activities have also been made, including a diminished risk associated with high-value customers and VIP schemes in iGaming.

Risk considerations

The UKGC has also introduced several newer risk considerations including the evaluation of organised crime gangs posing as customers, exploitation of vulnerable individuals’ gambling accounts also known as mule accounts, and the failure to implement a closed-loop system.

The UKGC also pointed out practices such as smurfing and peer-to-peer betting, both now classified as high-risk activities, highlighting the intensifying nature of remote betting.

UKGC response

In reaction to these findings, the commission has launched a confidential online service for reporting criminal and suspicious activities related to gambling, encouraging individuals with information on various activities to come forward and submit supporting channels.

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