FATF Targets Fintech Firms in Crackdown on Online Gaming Money Laundering

The Financial Action Task Force (FATF) has published its first comprehensive risk alert for the gaming and gambling sector, naming payment apps, e-wallets, cryptocurrency rails, and in-game currency platforms as primary vectors for organized crime to move illicit funds.

The report, which took a year-long investigation involving over 80 jurisdictions, industry bodies, and researchers, highlights that fintech firms embedded in those payment chains now face the same compliance scrutiny as casinos themselves.

Criminals are using techniques such as smurfing, mule accounts, and competition manipulation to exploit the anonymity and cross-border reach of online gambling platforms. The report also flags the use of AI tools to defeat remote identity verification checks at online casinos.

The FATF's new risk indicators will be referenced in supervisory reviews and enforcement actions by regulators in over 200 countries. Payment systems identified as particularly exposed include e-wallets, mobile money, and virtual assets including cryptocurrencies.