But what exactly is smart monitoring? Although Artificial Intelligence is trending, it becomes even more powerful when aligned with human expertise.
In practical terms, analysts and technology form the ideal duo for monitoring suspicious activity. One can work without the other, but together they boost efficiency and mitigate risks on a large scale.
Effective monitoring starts with real-time data analysis. Against crime, agility is essential: promptly identifying suspicious behavior helps map potential money launderers.
Using intelligence systems that consolidate information from multiple sources—such as sanctions lists and credit bureaus—enhances risk identification.
Proper evidence logging helps reduce risks, including reputational ones, and strengthens the operator’s defense in case of inquiries.
KYC is not enough: KYE and KYP in the operator’s routine
A necessary tool for monitoring suspicious activities is verifying player data. Document validation (ID and tax number), address, and banking information is just the first step in KYC (Know Your Customer).
However, a robust “Know Your Customer” process requires analyzing other complementary information.
Although KYC is the most well-known of the “K family,” on its own it may still pose risks. Attention must also be given to:
* KYE (Know Your Employee): Know your staff
* KYP (Know Your Partner): Know your business partners
The fixed-odds betting market involves daily risks, making it essential to know everyone in the chain continuously.
Post-onboarding: behavior, false positives, and controls
After KYC, the focus shifts to the player’s behavior, including inactivity on the platform.
At the first red flag, operators don’t need to immediately exclude the client. Monitoring can be more effective: it avoids false positives and allows for more consistent reports to COAF (Brazil’s Financial Intelligence Unit).
Based on this analysis—combining human and artificial intelligence—the operator can implement controls such as:
* Deposit and withdrawal limits
* Systematic logging of transactions (evidence log)
This recordkeeping is crucial. If a client is suspected of money laundering and there is no documentation, the operator may be investigated for omission or monitoring failures.
Audits and training: effectiveness, not rhetoric
Periodic audits are indispensable to confirm whether monitoring is truly effective or just regulatory window-dressing.
As Brazil’s market is still new, continuous review of compliance practices is essential to prevent loopholes exploited by fraudsters and money launderers.
Moreover, staff training is both a legal and strategic obligation. Lack of training can lead to serious failures: if an employee fails to identify suspicious activity, it can compromise the operator’s image and create regulatory risks such as fines or even suspension of operations.
Monitoring requires knowledge
When to report to COAF?
Faced with a red flag in a suspicious transaction, the question arises: report or not to COAF?
The answer is: any relevant fraud or suspicion of money laundering can and should be reported, provided it is supported by robust data and consistent elements for technical analysis.
Such data can only be captured through smart monitoring, reinforcing its importance for effective reporting.
Ultimately, AML monitoring in iGaming should not be seen as a cost, but as a strategic investment.
Those who monitor effectively mitigate risks, protect their reputation, and strengthen compliance with regulatory bodies.
Source: Legitimuz
