equipped to prevent, disrupt or investigate AI-enabled crime.”
While legislation may help to deter the threat of AI-enabled crime, the institute called for a“ more robust and direct approach” – one centred around the“ proactive deployment” of AI systems in law enforcement.
HOW WILL REGULATORS RESPOND TO INCIDENTS? Regulators across the world tend to be strict on AML infringements, which have historic connections to the gambling industry given the movement of vast sums of money.
In the UK, the Gambling Commission hit two operators with penalties for AML and customer care failures. In March, The Football Pools was ordered to pay £ 375,000 for AML breaches. The regulator found that when AML thresholds were reached, The Football Pools’ processes did not initiate hard stops. These only kicked in when a“ manual” review was taken.
Corbett Bookmakers was hit with a fine of £ 686,070 for numerous AML failures, which included not knowing the appropriate customer, product, geographic and payment risks. The commission stated that it had failed to take a sufficiently riskbased approach to AML.
The Gambling Commission has declared that all operators must train staff in the assessment of AIgenerated documents. Regulators can approach the issue by allowing information sharing across secure channels, promoting innovation in the sector and international cooperation, as well as reviews of their own frameworks.
FAST-MOVING TECHNOLOGY Annabelle Richard, legal partner at Pinsent Masons, tells iGB that given the emerging and fast-moving nature of this technology, regulators may be lenient in some early cases of AML rules being breached by deepfake technology.
If operators find their systems have been bypassed in some way, but they are still unsure of what the remedy should have been at the time of the incident, the regulator may opt not to hit them with an AML warning or fine.
However, if a failure of systems occurs, or an operator has been too slow to spot something that the tools exist to catch, a regulator will likely not be as lenient.
“ If you haven’ t even engaged with the authority to say,‘ I’ m not sure what I can and can’ t do,’ it will be considered that you didn’ t do what you were supposed to, to abide by your regulatory obligations. And that’ s going to be a whole different situation,” Richard says.
HOW GAMBLING CAN MITIGATE THE AML AI DEEPFAKE RISK The UK’ s National Crime Agency says fraud is the UK’ s most prevalent crime and AI has the potential to
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