The UK Gambling Commission has published its updated money laundering and terrorist financing risk assessment for 2026. The primary threats are AI-driven identity fraud bypassing KYC checks and B2B software suppliers' exposure to black market revenue.
The regulator documented a rise in AI-enabled fraud during customer verification. Criminals are deploying neural-network-generated fake documents, deepfake video and face-swap techniques to defeat KYC. Both the scale and sophistication of attacks have grown.
The UKGC raised the risk level for B2B online software suppliers from low to medium for the first time. Suppliers sell platforms to unlicensed operators, often without knowing it. The Commission said weak subcontractor oversight is part of the problem. Suppliers also receive payments in cryptocurrency or from crypto-linked entities, making it harder to trace the source of funds.
The assessment introduced a new high-risk category: land-based casinos operating as Money Service Businesses. These are terminals where foreign players convert funds from cards not accepted in the UK. Consultant Nigel Harvey explained the regulator cannot verify the origin of such money, making the channel attractive for laundering.
Industry AML sources link the update to the upcoming Financial Action Taskforce review. The UKGC is preparing for inspection, with a focus on land-based casinos — every operator in the sector will be audited this year. The previous FATF review commended UK controls.
