The UK Gambling Commission calls for stronger AML and customer checks and alerts operators to AI-generated fraud, crypto laundering, and black-market connections.

The UK Gambling Commission has identified several emergent threats in the money laundering and terrorism financing area that would require operators to deal with them this month, including crypto crash games and AI deepfakes.

They warned the operators to be aware of the new threats for avoiding license revocation or fines under the terms of their UK license.

Last month, the regulator issued penalties to two operators for deficiencies in customer service and anti-money laundering (AML). Corbett Bookmakers was fined £686,070 for multiple failures of AML, and The Football Pools, was fined for AML breaches for £375,000 (€449,732/$484,417).

The UK watchdog said it is aware that certain remote and non-remote casinos are offering unlicensed money service business (MSB) services, including foreign exchange, third-party check cashing, and the transfer of funds in and out of casinos through a third party, in an update to its AML and terrorist financing risks guidance.

According to the Commission, artificial intelligence algorithms and programs have advanced in sophistication and are currently being utilized to get beyond due diligence procedures.

AI is being used by criminals to produce deepfake videos, fake documents, and face swap photos and videos to aid in money laundering.

The UK agency has admitted that numerous gambling games produced by operators licensed for software operations have found their way onto unlicensed websites in the country.

Once again, it urged licensees to ensure that their suppliers were not linked with illegal websites. Perpetrators should immediately void such associations if it is discovered that this has happened.