HMRC’s Report Raises Questions About UKGC’s AML Practices

The Financial Action Task Force (FATF), a global body that sets standards for fighting financial crime, has begun a new round of country assessments. This time, the UK is under the microscope. A full Mutual Evaluation Review is expected in 2028, but early stages of the review are already underway.

FATF’s latest methodology is more focused on real-world effectiveness. It’s looking beyond rules on paper and asking how well those rules actually work in practice. The review will look at how financial institutions and sectors like gambling handle AML risks.

And that brings us back to the UK Gambling Commission which has come under fire in recent months. Critics say the Commission’s resources and enforcement efforts don’t match the scale of the challenges it faces.

The numbers back that up. The UKGC only has five full-time staff for AML and Counter-Terrorist Financing work. It also handed out fewer fines last year (just seven in total) compared to 19 the year before.

Many gambling operators work from overseas jurisdictions like Malta or Cyprus. That adds complexity to monitoring and enforcement. With most of these casinos operating online, tracking activity becomes even trickier.

Despite these concerns, the UK gambling industry is booming. Online revenue hit £1.54 billion in late 2024, even though the number of active accounts actually fell. Some analysts worry that fewer players spending more could create blind spots for potential money laundering.

FATF’s findings could shape the future of gambling oversight in the UK. If the review finds major weaknesses, it might push regulators to invest more in staff and stricter enforcement. One thing’s clear; the spotlight is on, and the pressure is building.