Key Takeaways:

• UKGC releases new AML and terrorist financing risk guidance
• Licensed software on unlicensed sites and crypto assets highlighted as concerns
• Crash games identified as potential money laundering risk

The UK Gambling Commission (UKGC) has issued updated guidance on emerging risks related to anti-money laundering (AML) and terrorist financing. This move requires UK-licensed gambling operators to review and potentially revise their risk assessments and related policies.

The April 2025 update outlines 13 broad AML risks, including the use of artificial intelligence to bypass customer due diligence, open-loop payment processes, and the growing interest in cryptoassets. The Commission has noted a rise in casino games developed by UK-licensed software operators appearing on unlicensed websites targeting the UK market, warning that this activity risks accepting funds from criminal sources.

Operators are advised to monitor their business relationships closely and terminate any partnerships with non-compliant entities immediately. The UKGC emphasizes the importance of notifying the Commission and presenting a clear plan to mitigate such issues.

The increasing interest in cryptocurrencies within the licensed gambling industry has been flagged as a concern from an AML perspective. The UKGC officially rates crypto as a 'high-risk payment method' and urges vigilance regarding its use and acceptance. Operators are encouraged to fully understand the services provided by their payment providers, especially those offering crypto payment facilities.

Notably, the guidance highlights crash games as a potential AML risk. These games, which have been popular in crypto casinos for years, are now gaining traction in the licensed casino sector. The mechanics of crash games, allowing players to cash out at any point after an initial bet, could potentially be exploited by criminals to disguise high-risk behavior.

The UKGC advises operators to assess the AML risk of any new product they launch and ensure appropriate procedures are in place to prevent money laundering. It suggests incorporating crash game activity into a customer's overall risk profile to enhance monitoring capabilities.

This updated guidance underscores the UKGC's commitment to maintaining the integrity of the UK gambling industry and combating financial crimes. As the landscape of online gambling evolves, particularly with the rise of crypto-based platforms and innovative game types like crash games, regulators are adapting their approach to ensure comprehensive oversight and protection against illicit activities.