FATF warns of emerging risks to economies from rising online gaming, gambling operations

Dawn reported that the Financial Action Task Force, the Paris-based global watchdog, has highlighted emerging threats from the expansion of online betting and gaming. In a statement issued on Wednesday after surveying 80 jurisdictions, the body said digitally linked, cross-border services are opening fresh routes for laundered funds, terror finance and weapons-related financing. Alongside this warning, it shared a set of risk indicators with national governments to help them spot misuse.

The report covers casinos, betting and online platforms, payment channels and illegal operators, along with their links to the broader financial system. It describes gaming activity as part of a wider value transfer network that includes actors which can sit outside existing anti-money laundering rules. The body also flagged the use of gambling platforms to move money without placing bets, and repeated small transactions designed to avoid detection.

Illegal gambling was singled out as one of the sector's most serious risks, with unlicensed offshore operators often posing as legitimate firms. The report also warned that ownership structures can be arranged to get around regulatory checks, particularly where controls are weak. President Giles Thomson called on governments to strengthen oversight, act against illegal operators and deepen cooperation between public and private bodies.