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How Gambling Sector Can Use Data Tools to Comply with AML/CFT Requirements?

Ensuring cost-effective AML/CFT compliance, casinos may need to use data tools based on ML/TF exposure risk

Gambling Fine Insights

The Scale of Anti-Money Laundering Fines in Gambling Sector

In 2023, the gambling industry remained in the news for hefty fines related to violation of compliance with Anti-Money Laundering (AML) regulations. Crown Casino's AUD 450 million settlement with AUSTRAC (Australian Transaction Report and Analysis Center) for violation of the Anti-Money Laundering and Counter-Terrorism ActΒ  2006, was the most prominent one. In March 2023, the UK Gambling Commission reportedly fined Β£19 million William Hill for social responsibility and anti-money laundering compliance failures.

While these two cases from Australia and England gained attention in the media, countries like the United States, Germany, Netherlands, Lithuania, and Malta also issued millions of dollars for AML and social responsibility regulation violations.

The vulnerability of the gambling industry to money laundering in different jurisdictions has been exposed on multiple occasions. The notable in this regard is Cullen’s Commission report which revealed how Casinos in British Columbia, Canada were being used to launder millions of dollars.

Casinos are likely to have lesser ML/TF exposure risk as compared to financial sector.

For instance, as per UK Gambling Commission guidelines, HM Treasury and the UK Home Office of National Risk Assessment have rated gambling as a low-risk sector.

However, over the years there has been an increase in money laundering and social responsibility fines in the United Kingdom in response to the Gambling Commission’s approach to enforcement as shown in figure in the figure below.