FATF calls for stronger controls on casino and online gambling transactions
Regulation1 min read
The Financial Action Task Force urged stronger controls on financial transactions in the casino and online gambling sectors, citing their use in fraud and money laundering networks in Southeast Asia. It said risks increase when casino junkets, online gambling platforms, crypto providers and financial institutions operate within the same networks, particularly where customer checks and oversight are weak.
The Financial Action Task Force (FATF) has called for stronger transaction controls in casinos and online gambling, citing their use in fraud and money laundering networks in Southeast Asia. It said regulators should pay more attention to cooperation between casinos, crypto providers and other financial parties to prevent misuse.
The FATF said risks arise when casino junkets, online gambling platforms, crypto providers and financial institutions operate in the same network. Weak customer checks and inadequate oversight increase those risks.
Criminal networks use casino junkets, illegal online casinos and crypto services to conceal money flows. Some junket operators accept cryptocurrencies such as USDT in exchange for casino chips, making the original source of funds harder to trace.
The FATF said organised scam-compound networks pose a growing global threat to the financial system. Those operations combine cybercrime, trafficking for forced labour and money laundering to generate illicit proceeds.
During the coronavirus pandemic, criminal organisations converted existing casinos and online gambling infrastructure for large-scale fraud. Hotels and offshore gambling providers' facilities housed such operations. The FATF said existing gambling infrastructure in Southeast Asia helped criminal organisations build scam compounds using established facilities and financial networks.