FATF warns of emerging risks to economies from rising online gaming, gambling operations
ISLAMABAD: The Financial Action Task Force (FATF) has warned of emerging risks to economies from rising online gaming and gambling operations, while sharing new risk indicators with countries to combat money laundering and terror financing. “As gaming and gambling services become increasingly digital, cross-border and interconnected, new money laundering, terrorist financing and proliferation…
The Financial Action Task Force (FATF) has issued a warning about the emerging risks to economies posed by the growing online gaming and gambling industries. In a new report, the global watchdog highlighted the risks associated with money laundering, terrorist financing, and proliferation financing within the sector, which has become increasingly digital and interconnected.
The FATF examined risks across casinos, gambling, and online gaming platforms, including payment channels and illegal operators, and found that these activities often operate outside national anti-money laundering/counter-terrorist financing (AML/CFT) regulatory frameworks. The report identified various ways criminals exploit the gaming and gambling sectors, such as moving money through gambling platforms without actually gambling, making multiple small transactions to avoid detection, and placing unusually large or coordinated bets to manipulate competitions.
The FATF also emphasized the need for countries and regulators to be vigilant in spotting and blocking such abuses, including the significant risks posed by illegal gambling markets that often rival or exceed the size of legal gambling markets.
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