UKGC Warns Operators of AI Criminality in Guidance Update
The UK Gambling Commission (UKGC), the region’s regulator, has announced an update to its guidance of the increased risks in the industry of anti money laundering (AML) and terrorist financing. This comes as there has been a rise in criminal activity using the latest AI technology.
LISTEN TO THIS ARTICLE:The UKGC says there is evidence that AI and the latest technology is being used by organised criminals to bypass account verification.AI is being used to create false documents that are then used open gambling accounts and then proceed to launder money.
Some land-based casinos are offering customers services such as foreign currency exchange and the regulator has warned these gambling companies this raises the risk of money laundering if customers decide to deposit high denomination cash such as €500 notes.
This emerging risks publication is a trigger for operators to review their money laundering and terrorist financing risk assessments and related policies, procedures, and controls to ensure that they remain appropriate and effective.
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Issues with the Rise of Crash Games Popularity
The regulator said there was also an issue of cryptocurrency being used in criminal activity in crypto crash games, and gives criminals the chance to make large transactions without detection. The UKGC wants gaming operators to monitor betting patterns relating to crash games so they can highlight potential criminal activity.
There are concerns that products of this nature can allow criminals to camouflage the high-risk behaviour of cashing out quickly with limited gameplay within the context of the crash game and that transactional monitoring controls may not be effective in detecting suspicious activity,
Additionally there is a concern that many operators who are licensed in the UK have software that is being utilized in illegal betting sites. The regulator has said it takes a dim view of this and will start to issue fines to operators that have been warned not to supply software to site that are unlicensed in the UK.
The UKGC has recently signed an MOU with the GRAI, the Ireland regulator, for greater collaboration between legislators in the European region.
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