UK Gambling Commission Highlights Emerging Threats in AML Compliance

One of the standout warnings in the Commission’s 2025 AML risk update concerns the increasing use of AI to forge documentation. Fraudsters are now deploying AI-generated IDs, deep fake facial videos, and face swaps in an attempt to deceive AML controls. These AI-driven deceptions are becoming harder to detect and are being used to facilitate serious criminal offences such as laundering illicit funds and even financing terrorism.

In response, the UKGC is urging gambling operators to upgrade both their systems and training. Staff must be capable of spotting signs of falsified documents that may have been created using AI tools.

The watchdog is placing particular emphasis on documented risk assessments. Simply assuming a threat isn’t relevant won’t be enough as operators need a recorded rationale for their approach and a mapped connection to company policies and procedures.

Legal specialists at Wiggin LLP emphasised that failure to engage thoroughly with these emerging risks has already drawn criticism from the regulator. It’s crucial for operators to be able to demonstrate both awareness and responsive action.

Another significant focus of the guidance is the growing interest in crash games. These fast-bet games, which are especially popular on crypto-based offshore casinos, are flagged as a potential vector for laundering. The concern is that high-risk financial behaviour like rapidly cashing out with minimal gameplay, can be disguised as normal activity within the structure of these games, making it difficult for traditional transaction monitoring tools to detect wrongdoing.

The Commission also reiterated its concerns around the money service business (MSB) functionality still offered in some casinos. Though fewer venues are engaging in MSB practices such as accepting large foreign currency notes, the regulator maintains this area carries a high risk and must be monitored closely.

During these advances in AI and deepfake scams it is important to know how to stay safe when visiting online casinos.