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The neobank revolution promised speed, simplicity, and freedom — but it also brought new responsibilities. When it comes to illegal gambling transactions, the stakes couldn’t be higher.
Across Europe, gambling is strictly controlled. Payments to unlicensed operators aren't just risky — they’re illegal. Regulators expect full compliance — and they won't accept "we didn’t know" as an excuse.
Miss a suspicious payment, and you risk:
It’s not optional — it’s mandatory:
Automated MCC (Merchant Category Code) checks aren’t enough anymore. Sophisticated fraudsters disguise their operations. If your compliance systems can’t detect them, your entire platform is exposed.
Illegal gambling operators often hide behind fake MCCs, mislabeled services, or third-party processors. Doesn’t matter. Regulators hold YOU responsible.
If you process a payment to an illegal gambling site — even unknowingly — you could still face penalties.
Enabling or ignoring payments made through third parties is another compliance nightmare. Know-your-customer (KYC) and transaction monitoring aren't optional nice-to-haves — they are your shield against massive legal fallout.
In the race to win customers and scale fast, many neobanks and payment companies have overlooked compliance hygiene. That’s no longer sustainable. The next audit, the next investigation, the next big scandal — it’s not a question of "if," but "when."
This content is provided by an external author without editing by Finextra. It expresses the views and opinions of the author.
Denys Boiko Founder at Erglis
26 May
Rob Straathof CEO at Liberis
23 May
Leon Fischer-Brocks Co-Founder | CEO at Bloxley
22 May
Priyanka Rao Content Strategist at Jupiter Money
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