Money laundering: EU ups online gambling risk to highest level
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The European Commission has released its third supra-national risk assessment of money laundering and terrorist financing. The 2022 edition is the third such risk Assessment. Online gambling is especially vulnerable to money-laundering and terrorism financing, as it is connected to the use of e-money and digital currencies. The risk level is at the highest possible risk. Several EU online operators have already implemented anti- money launderers' measures.
The Commission has made a number of recommendations for EU member states. It recommends promoting a lower threshold of winnings subject to customer due diligence and regular training sessions for staff and compliance officers. It also recommends that players cannot hold multiple accounts with the same brand.
Land-based casinos were rated as of high vulnerability in 2019, but the classification was dropped to medium in 2022. The biggest risk for money laundering at a casino is infiltration, which is caused by staff connected with money-laundering schemes. Law enforcement agencies are still identifying some weaknesses in the current legal framework. For lotteries and gaming machines outside of casinos, the risk was classed as low. For bingo, it was the same as in 2018. It was considered to be high for poker and retail betting.
FATF has cracked down on gambling hubs. Malta was added to its "grey list" of jurisdictions under increased monitoring. Gibraltar was removed from the list earlier this year.
