Gambling, payment firms face heightened AML scrutiny as EU fines top €36M: Report
Gambling and payment firms across Europe are under growing scrutiny from regulators, with more than €36 million in anti-money laundering (AML) fines issued between March 2024 and March 2025. According to Vixio’s AML Outlook 2025, enforcement activity is intensifying as authorities crack down on failures in governance, customer due diligence, and transaction monitoring across both sectors.
The report from Vixio, a regulatory technology (RegTech) provider, highlighted around 30 enforcement actions taken against payments and e-money firms over the past year alone, reflecting a more assertive stance from European regulators determined to close long-standing compliance gaps. Gambling operators, who often share exposure to similar risks, are also being urged to strengthen controls amid mounting regulatory expectations.
“Although AML compliance involves significant costs for payments firms – including investment in transaction monitoring systems, customer due diligence (CDD) processes and ongoing staff training – the consequences of failure can be significant,” John Gidla, Head of Payments Compliance at Vixio said. “In addition to financial penalties, failing to prevent money laundering can severely damage a firm’s reputation, leading to loss of customers, partners and investor confidence. Maintaining a strong compliance framework is crucial for preserving trust and long-term business viability.”
Key enforcement cases highlight systemic weaknesses
The report details several enforcement cases from across the European Economic Area, illustrating the range of compliance failures drawing regulatory responses. In February 2025, Estonia’s Money Laundering Data Bureau revoked B2BX Digital Exchange OÜ’s licence, citing deficiencies in customer due diligence, transaction monitoring, and risk assessments. In March 2025, Germany’s BaFin fined Ratepay €25,000 over suspected money laundering weaknesses. Lithuania’s central bank revoked Foxpay’s licence in November 2024 due to widespread AML/CTF failings and governance breaches, including fund mismanagement and conflicts of interest.
Vixio said these incidents underscore how both payments and gambling operators remain vulnerable to AML breaches when controls are poorly designed or not scaled in line with business activity.
Shift in regulatory priorities
Regulators are increasingly targeting structural weaknesses rather than isolated procedural lapses. Gidla told SiGMA News that the focus has shifted noticeably toward whether AML frameworks are keeping pace with business growth and the scale of associated risks.
“Regulators are placing growing emphasis on the failure of payments and e-money firms to adequately invest in anti-financial crime systems and controls. Recent enforcement and supervisory messaging highlight that poor governance, weak oversight, and fragmented controls are making firms especially vulnerable to exploitation by financial criminals,” he said.
“Compared to previous years, there’s a noticeable shift toward scrutinising whether firms are scaling their AML frameworks in line with their growth and risk exposure, especially as digital business models expand.”
This trend is also being reflected in the gambling industry, where rapid expansion into new markets and product verticals often outpaces investment in compliance infrastructure.
Technology: AI helps firms stay ahead of criminal tactics
Vixio’s findings also explore how technology is reshaping AML compliance. Firms are beginning to adopt advanced tools that go beyond basic regulatory requirements, with artificial intelligence (AI) playing a prominent role.
“Firms are increasingly turning to AI to strengthen their AML frameworks, particularly in areas like automation, transaction monitoring, and behavioural pattern analysis,” Gidla said. “While regulators are beginning to acknowledge the potential of these technologies, many firms are already going beyond baseline expectations, using advanced tools to identify suspicious activity faster and more accurately.”
As financial crime tactics grow more complex, Vixio said firms deploying AI-driven solutions can detect suspicious activity with greater speed and accuracy, making technology adoption an increasingly important compliance differentiator in both the payments and gambling sectors.
Startups, fintech prioritise governance amid budget constraints
Smaller firms, especially early-stage fintechs and gambling startups, face added pressure to comply with AML obligations without the same resources as established operators. However, many are finding practical ways to maintain compliance without overextending budgets.
“Smaller fintechs often face resource constraints that make it harder to invest in the same level of AML tooling or in-house expertise as larger firms,” Gidla said. “Although building out internal compliance teams can create long-term value, it’s not always viable early on.”
“Instead, many organisations are focusing on strong governance, ensuring staff are trained on emerging threats and that frameworks keep pace with business growth. It’s about being smart and scalable from the start.” Gidla added.
Beyond the fine
While financial penalties are headline-grabbing, non-financial consequences are proving equally disruptive. Regulators are increasingly imposing restrictions that go beyond fines, affecting a firm’s ability to operate and grow.
“In addition to fines, regulators are increasingly using non-financial sanctions such as onboarding restrictions, enhanced capital requirements, and the appointment of external auditors,” said Gidla. “These measures can significantly slow a firm’s growth and damage its reputation with partners and banking providers.”
Internal impacts are also considerable. “Prolonged regulatory scrutiny can also impact staff morale and create operational drag, particularly where leadership is perceived to have failed on governance,” Gidla noted.
AMLA set to harmonise oversight across the EU
The introduction of the European Union’s Authority for Anti-Money Laundering and Countering the Financing of Terrorism (AMLA) is expected to bring more consistency to AML enforcement across member states. Historically, fragmented approaches have created compliance uncertainty and left gaps in oversight.
Vixio’s suggested that AMLA could help close these gaps by creating a harmonised regulatory environment for payments and gambling operators alike. Enhanced cross-border coordination may also reduce opportunities for regulatory arbitrage by firms seeking to exploit uneven enforcement.
