AML tools, short for Anti-Money Laundering, have become more than just a regulatory requirement for iGaming platforms, both in Brazil and globally. They are essential for gaining user trust and driving engagement— in today’s highly competitive market, any platform that fails to offer AML-based security will be quickly replaced by a competitor.
In this article, InPlaySoft discusses the importance of AML tools, how they protect both operators and users, the risks of non-compliance, and the key role software providers play in this context.
What Are Anti-Money Laundering (AML) Tools?
Due to its fast-paced, digital, and global financial transactions, the iGaming sector is highly vulnerable to the crime known as money laundering—the process of disguising the illicit origin of funds to make them appear legitimate.
AML tools aim to detect, prevent, and report suspicious activity to the appropriate authorities. They are especially important in iGaming due to the digital, transactional, and often anonymous nature of online gaming, which enables large sums of money to move with minimal oversight if proper controls aren’t in place.
According to a report by the Financial Action Task Force (FATF), gaming and betting sectors are among the most exposed to financial crimes when operating without an effective AML system. Countries such as the UK, Malta, and more recently Brazil, require iGaming operators to implement AML policies aligned with international standards.
How Do AML Tools Work?
AML tools leverage technologies such as machine learning, artificial intelligence, and predictive analytics to identify abnormal behavior patterns. These tools combine various features into a robust defense system, including:
- Identity Verification (KYC): Known as "Know Your Customer", this process verifies documents, validates addresses, and performs risk analysis using public and private data.
- Transaction Monitoring: Analyzes deposits, withdrawals, and bets in real time to detect suspicious activity, such as unusually large transactions or repeated use of different payment methods.
- Sanctions List Screening: Checks whether users or business partners appear on international sanctions lists such as OFAC (USA), UN, EU, or national lists.
- Automated Reporting: Efficient AML systems simplify the generation of automatic and auditable reports for regulatory authorities, documenting suspicious transactions and actions taken, thus ensuring transparency and legal compliance.
Risks of Operating Without AML Tools.
Ignoring or underestimating AML tools can lead to serious consequences for iGaming platforms. Key risks include:
- Fines and Penalties: Severe penalties can be imposed on companies that fail to implement effective AML policies, including heavy fines and sanctions.
- Loss of Licenses: Authorities may suspend or revoke a platform’s license if AML regulations are violated, preventing legal operation.
- Reputational Damage: Involvement in money laundering scandals can erode the trust of users, investors, and partners. In emerging markets like Brazil, reputation is a strategic asset.
- Exploitation by Criminal Networks: Without AML tools, criminals can use the system to move illegal money, placing the platform at risk of becoming an accomplice, even unintentionally.
Benefits of Choosing Software Providers with Integrated AML Tools.
Given the regulatory complexity and risks involved, merely meeting minimum requirements is not enough—it is crucial to choose a software provider that offers robust AML tools built into the iGaming platform. Key advantages include:
- Regulatory Compliance: Good providers offer solutions that comply with international regulations, facilitating market entry without major adjustments.
- Automation and Scalability: Automated AML systems can monitor thousands of transactions simultaneously without compromising website performance.
- Continuous Updates: Laws and regulations change frequently. Quality providers keep their tools up to date and in line with the latest standards.
- Reporting and Regulatory Support: Besides streamlining monitoring, solid AML systems help prepare the reports required by regulators—vital during audits and inspections.
The Brazilian Market.
With the regulation of fixed-odds betting through Law No. 14,790/2023 and the creation of the Secretariat of Prizes and Betting, Brazil has taken a major step toward formalizing the iGaming sector. One of the new law’s requirements is the implementation of strict AML and KYC practices.
Platforms aiming to operate legally in Brazil must have anti-fraud systems, identity verification mechanisms, and transaction monitoring in place, in line with the Money Laundering Prevention Law (Law No. 9,613/1998) and regulations from the Central Bank and COAF.
According to the Ministry of Finance, regulation could generate over R$15 billion annually, highlighting both the market’s scale and attractiveness—and the high level of regulatory scrutiny that will come with it.
InPlaySoft: Security Through AML and KYC Tools.
InPlaySoft is a software provider for iGaming platforms, including online casinos and sports betting websites, focused on security and regulatory compliance. The company offers integrated AML and KYC tools, ensuring that all our partners—and their players—operate within legal boundaries and remain protected.
