Money laundering risk assessment and reporting
We work collaboratively with other agencies to reduce the likelihood of licensees being used to launder money or fund terrorist activities. We set licence conditions for licensees to ensure that they adhere to money laundering regulations and proceeds of crime legislation, and report suspicious activity.
Because we are part of the wider framework of money laundering prevention, demonstrating our individual impact is not always straightforward. We have therefore chosen metrics that can indicate the relative position of gambling within the wider preventative framework, and whether licensees are complying with their reporting requirements.
The aim of our regulatory activity is to ensure licensees have effective risk assessments, policies, procedures, and controls in place to prevent money laundering and terrorist financing.
Suspicious Activity Reports (SARs) submitted by licensed gambling operators
This data is taken from reports made to us by licensees. Licensees are required to report the submission of a Suspicious Activity Report (SAR) to us as a key event as a condition of their licence. All licensees have a responsibility to keep financial crime out of gambling. We undertake a range of activities to ensure licensees have robust controls in place to address the risks within their businesses. The identification and reporting of suspicious activity is a key indicator of the vigilance within the industry.
Number of Suspicious Activity Report (SAR) key event reports submitted by licensed gambling operators
| Year | Number of SARs |
|---|---|
| April 2022 to March 2023 | 20,562 |
| April 2021 to March 2022 | 11,407 |
| April 2020 to March 2021 | 8,745 |
UK money laundering risk assessment
The HM Treasury and the Home Office conduct a national risk assessment of money laundering and terrorist financing risks for financial and designated non-financial businesses and professions in the United Kingdom (UK). The risk scores take account of the risks from different sectors and the actions taken to mitigate them.
The following data is from the most recent risk assessment undertaken.
Gambling Risk Scores relative to wider regulated financial sectors
| Sectors | 2020 Risk Score |
|---|---|
| Regulated casinos – money laundering | Low |
| Regulated casinos – terrorist financing | Low |
| Other gambling – money laundering | Low |
| Other gambling – terrorist financing | Low |