Aiding and Betting

Aiding and betting is a common fraudulent activity in the gambling and gaming sector and is generally common for cash-intensive businesses where there’s a higher risk of money laundering. Money laundering is still an issue in all sorts of gambling establishments because criminals use them as channels to launder illicit funds.

This is where the “aiding” part comes into play and involves knowingly helping to hide and launder illegally obtained money, for example, by:

• Engaging in fraudulent sports betting practices to clean the dirty money. 
• Placing bets with illicit funds, using casinos or online gambling sites to process money and hide its true origin. 

A compliance officer who spots suspicious activity and doesn’t report such AML red flags on purpose can be charged for aiding and betting because they allow for the fraud to slip through and remain unreported. At first glance, little crimes, like helping another person access a financial institution’s building without permission, can also not only be considered trespassing but also aiding and betting. 

The Sixth Anti-Money Laundering Directive, or the 6AMLD regulation, sets stricter AML/CTF standards in the EU. It adds new money laundering crime categories and expands offenses to include aiding and betting (Article 4). This means that enablers are legally liable, not just those directly profiting from laundering activities. In general, this regulatory framework came after 5AMLD and increased penalties for non-compliance by regulated entities.

Part of the company’s key anti-money laundering (AML) controls is the Know Your Customer (KYC) process, also known as identity verification. It requires users to provide their government-issued ID documents and record a selfie video (biometric authentication step) to find out if they’re providing a legitimate document and that it matches their biometric data (their face) in real-time. 

Other AML measures include customer risk assessment and due diligence, which requires assessing risks linked to the customer after they’re onboarded. Additionally, AML compliance also requires screening against criminal databases, such as watchlists, PEPs and sanctions, or adverse media.

Yes. Several factors typically need to be established to prove aiding and abetting. First, the crime must have been committed by another party. Additionally, the individual accused of aiding and abetting must have actively assisted with the crime. That means they must also have demonstrated clear criminal intent, meaning the person was aware of the crime and took action to help ensure its success.