UKGC Updates AML Guidance Amid Rising AI and Crash Game Risks

According to the Commission, the rise of AI-generated documents as well as deep fake videos and face-swapped identification is posing serious challenges to operators attempting to verify customer identities. Criminals are now using increasingly sophisticated methods to get around AML checks, with AI making it easier than ever to produce convincing fake credentials. The National Crime Agency has echoed this concern, reporting that AI-manipulated accounts are more commonly linked to illicit activities such as money laundering and even terrorist financing.

The regulator has urged operators to bolster their training efforts. Staff must now be capable of identifying fake or altered documents that may have been generated through advanced technologies. Without this vigilance, operators risk not only regulatory penalties but also being unknowingly complicit in criminal networks.

Legal experts from Wiggin LLP have also weighed in, urging operators to formally document how they’ve assessed these emerging risks and implemented new safeguards. It’s not enough to acknowledge the risk, and operators must show their reasoning if they determine certain risks aren’t relevant to their business.

In addition to AI threats, the UKGC has flagged crash games as a growing concern. These fast-paced games are often found on unlicensed crypto casino platforms and can be exploited by criminals. Because sudden cashouts are common in crash game mechanics, it becomes harder for AML systems to flag suspicious withdrawals. The regulator warns that such behaviour could be used to mask money laundering activities.

Another area of concern is the use of money service business (MSB) practices within casinos, both online and land-based. Although fewer venues now offer MSB services such as accepting large foreign currency deposits, the Commission still considers the activity high risk.

This latest guidance underscores the need for constant adaptation in AML procedures, especially as digital threats evolve.