How to Ensure Payment Compliance Across Borders
Jul 1, 2025
Fluid
Learn how iGaming operators can navigate cross-border payment compliance to avoid penalties and maintain trust with players.
Cross-border payment compliance is critical for iGaming operators to avoid penalties, protect reputations, and build trust. Here's a quick summary of what you need to know:
Why It Matters: Non-compliance can result in fines, reputational damage, and legal consequences. For example, Gammix Limited was fined €19.7 million in 2024 for unlicensed services.
Key Regulations:
AML/KYC: EU's 6AMLD mandates strict due diligence for transactions over €2,000.
GDPR: Protects player data with penalties up to €20 million or 4% of global turnover.
PCI DSS: Ensures payment data security with encryption and fraud prevention.
Technology Solutions:
Use AI tools for fraud detection and real-time monitoring.
Integrate systems with local regulations for seamless compliance.
Automate regulatory reporting to save time and reduce errors.
Customisation:
Tailor payment interfaces for local currencies, languages, and accessibility.
Ensure compliance with the European Accessibility Act by June 2025.
Audits and Inspections:
Regular internal audits to identify risks early.
Maintain detailed transaction records and train staff regularly.
Managing AML/CFT Risks in Cross-Border Payments: A Deep Dive into ASEAN Dynamics
Key Regulations for Cross-Border Payments
Navigating cross-border payment compliance in the iGaming industry means tackling a patchwork of regulations that vary across jurisdictions. For operators in regulated markets, staying compliant is crucial - not just to maintain licences, but also to avoid hefty penalties.
The regulatory framework revolves around three main areas: anti-money laundering (AML) protocols, data protection rules, and payment security standards. Each has unique requirements that directly shape how transactions are processed and player information is managed. Let’s break down the key elements of AML/KYC, data protection, and payment security to simplify compliance efforts.
AML and KYC Requirements
The 6th Anti-Money Laundering Directive (6AMLD) standardises money laundering definitions across EU member states and holds not just individuals but also legal entities accountable for violations. For iGaming operators, this means companies themselves can face legal consequences if they fail to meet AML obligations.
Malta, a hub for iGaming, has aligned its AML regulations with Financial Action Task Force (FATF) recommendations. The Malta Gaming Authority (MGA) mandates strict due diligence measures, especially regarding suspicious activity reporting.
"The risk-based approach hinges on two aspects: an understanding of the risks one is facing and the variation of one's controls, policies, measures, and procedures to achieve the strongest mitigating effect possible." - FIAU implementing procedures Part 1
Customer Due Diligence (CDD) is at the heart of AML compliance. EU regulations require gambling service providers to apply enhanced due diligence for transactions exceeding €2,000. This threshold reflects the heightened scrutiny the iGaming sector faces compared to other industries.
Know Your Customer (KYC) procedures go beyond identity verification. They include checking the source of funds, understanding the customer relationship, profiling risks, monitoring transactions, and reporting suspicious activity. The UK Gambling Commission has recently tightened these standards, making onboarding and verification processes even more rigorous.
To implement these measures effectively, operators should develop robust compliance programmes. These should include enhanced due diligence for high-risk clients, regular staff training, continuous customer monitoring, and independent AML audits. Any suspected money laundering activity, regardless of the transaction amount, must be promptly reported to the appropriate authorities. These steps are essential for managing the complexities of cross-border risks.
Data Protection and GDPR Compliance
The General Data Protection Regulation (GDPR) has reshaped how iGaming operators handle player data. With fines reaching up to €20 million or 4% of global annual turnover - whichever is higher - compliance is non-negotiable.
Under GDPR, personal data must be processed "lawfully, fairly, and transparently." Operators need explicit consent before collecting player information, and players retain the right to access their data or request its deletion at any time.
One of the most challenging aspects for operators is the 72-hour breach notification rule. If a data breach occurs, operators must notify regulators and affected individuals within this tight timeframe.
The principle of privacy by design requires data protection to be integrated into system architecture from the start. This involves using encryption, tokenisation, and other security measures as standard practice.
GDPR Requirement | Implementation Approach | Operational Impact |
|---|---|---|
Data Minimisation | Collect only device ID and IP address | Reduces storage costs and lowers breach risks |
User Control | Add one-click unsubscribe options | Builds trust and ensures regulatory compliance |
Data Security | Encrypt all stored personal data | Protects against unauthorised access and fines |
For cross-border operations, operators must track regional user opt-ins and conduct regular compliance audits. Additionally, understanding local expectations around privacy is key, as these can vary significantly between jurisdictions.
Payment Security Standards
Data protection works hand-in-hand with robust payment security to safeguard cross-border transactions. Compliance with the Payment Card Industry Data Security Standard (PCI DSS) is a must for any organisation handling credit card data. This applies to nearly all iGaming operators.
Cross-border payment processing adds complexity to PCI DSS compliance, as operators must meet varying standards across different jurisdictions. Key requirements include maintaining secure networks, protecting cardholder data, implementing access controls, and monitoring systems regularly.
A cornerstone of PCI DSS is end-to-end encryption, which ensures that payment data is secure during transmission. For cross-border transactions, encryption protocols must meet the highest standards across all relevant regions. Tokenisation adds an extra layer of security by replacing sensitive data with unique identifiers.
Fraud detection and prevention systems must also adapt to the nuances of cross-border payments. Legitimate international transactions often trigger fraud alerts, so operators need sophisticated tools to distinguish between genuine activity and suspicious behaviour. Real-time monitoring is crucial for identifying potential fraud while minimising false positives that could disrupt legitimate transactions.
Regular security assessments and penetration tests are essential for maintaining PCI DSS compliance. These evaluations should cover every stage of the payment process, from deposits to withdrawals.
To succeed in cross-border operations, iGaming operators must integrate AML/KYC protocols, GDPR compliance, and PCI DSS standards into a unified strategy. By aligning these requirements, operators can create a seamless and secure payment experience across jurisdictions.
Setting Up Compliant Payment Systems
Creating a payment system that meets cross-border compliance standards requires more than just ticking boxes. iGaming operators need technology that not only prevents violations but also ensures a seamless experience for players. This involves using AI tools, aligning with local regulations, and enabling real-time reporting. Together, these elements create a system that balances fraud prevention with regulatory requirements.
AI-Powered Monitoring and Fraud Prevention
Artificial intelligence is changing the game in fraud prevention, shifting the approach from reactive to proactive. Instead of flagging suspicious transactions after they occur, AI systems can predict and stop fraudulent activities before they even happen. This is especially crucial for cross-border operations, where fraud costs the online gambling industry over US$30 billion annually.
"AI means from stringent to pre-emptive, enabling casinos to forecast and prevent fraud before its occurrence rather than just kick it out afterward on each alert the system gives." - Craig Davies
Fraud schemes are becoming more sophisticated, with tactics like account hijacking and organised fraud rings on the rise. In fact, 56% of fraud analysts reported encountering fraud rings in 2023. These schemes often exploit bonuses, manipulate game outcomes, and launder money through gambling platforms.
AI-powered systems are equipped to handle these challenges by analysing massive datasets in real time. For example, one casino reduced fraudulent transactions by 30% after adopting an AI-driven fraud detection system. Similarly, AI tools for detecting money laundering have been shown to cut suspicious transaction volumes by up to 40%.
These systems use advanced techniques like device fingerprinting, dynamic risk scoring, and biometric analysis to identify and block fraud. They also minimise false positives, which is critical for handling legitimate international transactions. Platforms like Fluid use machine learning to adapt to evolving fraud tactics, ensuring effective detection without disrupting genuine players.
Integration with Local Regulations
Complying with local regulations is another challenge for payment systems operating across multiple jurisdictions. Beyond fraud prevention, these systems must automatically adjust to different compliance standards in various markets.
The sheer scale of cross-border payments highlights the complexity. By 2027, these transactions are projected to exceed US$250 trillion, driven by global trade and technological advancements. For iGaming operators, this growth offers opportunities but also introduces regulatory hurdles.
Payment processing times vary by method: credit and debit cards or bank transfers typically take 1–3 business days, while e-wallets and local payment methods often process faster, sometimes instantly. However, these local methods require specific integrations to meet regional requirements.
API integrations are essential for automating regulatory checks, such as screening against sanctions lists or politically exposed person (PEP) databases. This automation is critical as 5% of global digital transactions are suspected to be fraudulent, with risky transactions increasing by 14% annually.
Payment Service Providers (PSPs) play a crucial role in addressing these challenges. The right PSP can expand market access, ensure regulatory compliance, and support multi-currency transactions. Systems must also handle currency conversions, adhere to regional standards, and accommodate local payment preferences, all while maintaining compliance across all jurisdictions.
Real-Time Data for Regulatory Reporting
Real-time data is vital for meeting regulatory reporting requirements. Operators need immediate access to transaction data and player behaviour analytics to address compliance issues as they arise. AI tools simplify this process by automating data collection and report generation, saving time and reducing manual effort. The AI iGaming software market, valued at US$1.2 billion, is expected to grow to US$19.2 billion by 2027.
"SEON significantly enhanced our fraud prevention efficiency, freeing up time and resources for better policies, procedures and rules." - Chief Compliance Officer, Soft2Bet
Real-time transaction monitoring must integrate seamlessly with AML (Anti-Money Laundering) checks, KYC (Know Your Customer) protocols, and responsible gambling measures. This ensures a comprehensive compliance framework capable of detecting suspicious patterns, such as unusual deposit or withdrawal behaviours that could indicate money laundering.
For European operators, reporting suspicious activity to Financial Intelligence Units (FIUs) is a legal obligation. Automated systems make this process faster and more accurate, reducing compliance risks. Additionally, record-keeping regulations require operators to store detailed transaction and customer data for at least five years. AI systems simplify this by automatically organising and storing the necessary information, ensuring it’s readily available for audits or investigations.
Behavioural analytics also play a key role. By monitoring activity across accounts and platforms, these tools can detect bonus abuse, coordinated betting patterns, and other irregularities that may signal regulatory breaches. Together, these measures form a robust compliance strategy, helping operators maintain long-term success in a highly regulated industry.
Customising Payment Interfaces for Cross-Border Compliance
Designing payment interfaces that work seamlessly across various markets requires careful adjustments. Businesses need to align their systems with local standards, regional preferences, and accessibility needs. By tailoring payment interfaces, companies not only stay compliant with regulations but also build trust with users by providing a familiar and reliable experience across different regions.
Currency and Formatting Standards
To avoid confusion and meet regulatory requirements, payment interfaces should automatically adjust to local formatting conventions. This includes adapting number formats, date structures, and language preferences to match user expectations.
For businesses operating in Malta, specific formatting rules must be consistently applied across all payment-related touchpoints. These include:
Currency display: The euro symbol (€) should include a space before the amount.
Decimal and thousand separators: Use a period (.) for decimals and a comma (,) for thousands.
Date format: Display dates in the DD/MM/YYYY format.
Language: Use British English for text (e.g., "Licence" instead of "License").
Format Element | Malta Standard | Example |
|---|---|---|
Currency Display | Euro symbol with space | € 1,000.00 |
Decimal Separator | Period (.) | € 10.50 |
Thousand Separator | Comma (,) | € 1,000,000.00 |
Date Format | DD/MM/YYYY | 04/05/2025 |
Language Convention | British English (e.g., Licence) | Licence |
To ensure accuracy, systems should automatically detect the user's location and apply the correct regional formats. Server-side validation is crucial to prevent transaction errors or compliance issues. Advanced platforms take this a step further by automating currency and number formatting, ensuring consistency across markets while enhancing the user experience.
Language Considerations and UX
Localising payment interfaces goes beyond simple translation. It involves adapting the entire checkout experience to align with regional habits and expectations, creating a process that feels intuitive and familiar.
Key aspects of localisation include:
Supporting region-specific payment methods.
Displaying prices in local currencies.
Complying with local regulations.
To make the checkout process seamless, interfaces should present payment options relevant to the user’s region. Field labels, error messages, and action buttons should be in the local language, while formats for addresses, postal codes, dates, phone numbers, and currency symbols should reflect regional norms.
A mobile-first approach is also essential. Payment interfaces should work smoothly on smaller screens, featuring responsive layouts, easy-to-tap buttons, and mobile-friendly forms. Authentication flows, such as Strong Customer Authentication (SCA), should be embedded directly into the interface whenever possible, avoiding redirects that can disrupt the user experience.
By combining regional payment methods, clear instructions, and a straightforward user interface, businesses can create a checkout process that feels natural and user-friendly.
Accessibility and Inclusivity
The European Accessibility Act (EAA), which takes effect on 28th June 2025, requires online stores and digital services to be accessible to everyone. This means interfaces must include features like intuitive navigation, clear text contrast, alternative text for images, and interactive elements designed for ease of use.
Payment interfaces should ensure that all identification, security, and payment steps are perceivable, operable, understandable, and robust. These principles, outlined in the WCAG 2.1 Level AA guidelines, include:
Readable and adjustable text.
Compatibility with screen readers.
Keyboard-friendly navigation.
Clear and straightforward layouts.
Customer support options should also cater to diverse needs, offering text-based chat, phone support, or video calls with sign language assistance. Providing alternative payment methods adds another layer of inclusivity.
Platforms like Fluid incorporate AI-powered personalisation to enhance accessibility. By automatically adjusting text sizes, contrast levels, and navigation patterns based on user preferences, Fluid ensures payment experiences are not just compliant but also inclusive and user-friendly. Such attention to detail helps meet regulatory standards while exceeding user expectations.
Regular Compliance Audits
After integrating robust systems and implementing continuous monitoring, regular audits play a crucial role in ensuring compliance with ever-changing cross-border regulations. These audits help iGaming operators pinpoint potential vulnerabilities before they escalate into costly issues, such as regulatory fines.
The Isle of Man's Gambling Supervision Commission (GSC) provides a clear example of how regulators approach compliance monitoring. They conduct compliance visits within 6–12 months of a licensed operation going live, followed by routine inspections every 18 months for operators classified as standard risk. The GSC gives operators a four-week notice and requires attendance from off-Island directors and the Money Laundering Reporting Officer (MLRO). During these visits, they review internal assessments and focus on areas like quarterly returns, business continuity plans, and overall compliance culture. Following the visit, the GSC issues a draft report using a "traffic light" system to flag any deficiencies. This structured approach highlights the importance of having detailed checklists and thorough preparations for inspections.
"Compliance within the context of casinos refers to the adherence to local, national, and international laws and regulations that govern gaming activities." – Association of Certified Gaming Compliance Specialists
Operators who conduct regular internal audits can address compliance gaps early, reducing the likelihood of surprises during external inspections.
Building a Compliance Checklist
A well-organised compliance checklist helps maintain uniform standards across payment operations. It should focus on three key areas: transaction record retention, staff training, and evaluation of third-party processors.
Transaction Records: Keep detailed transaction logs for at least five years. These logs should include timestamps, customer identification details, transaction amounts, and any monitoring system alerts. Advanced platforms like Fluid simplify this process by automating record retention with precise timestamps, ensuring no detail is overlooked.
Staff Training: Regulations evolve constantly, so ongoing training is essential. Employees must recognise suspicious activity patterns, stay updated on Anti-Money Laundering (AML) requirements, and follow proper escalation protocols. Training should go beyond annual certification to include practical, scenario-based learning.
Third-Party Processors: Regularly review the compliance status of payment processors. Conduct quarterly evaluations of their certifications, security measures, and regulatory standing in every jurisdiction where you operate.
Compliance Area | Review Frequency | Key Documentation |
|---|---|---|
Transaction Records | Daily monitoring; monthly review | Timestamped logs, customer verification, suspicious activity reports |
Staff Training | Quarterly updates, annual certification | Training completion records, competency assessments, incident response logs |
Third-Party Processors | Quarterly evaluation, annual audit | Compliance certificates, security assessments, regulatory status reports |
Additionally, implement customer due diligence measures, such as Know Your Customer (KYC) verification, enhanced due diligence for higher-risk cases, and updated risk profiles. While advanced software can flag suspicious transactions, human oversight remains critical for handling complex scenarios.
Preparing for Regulator Inspections
Once your compliance checklist is in place, the next step is to embed inspection readiness into your daily operations. This ensures that preparation for regulatory inspections becomes a seamless part of your workflow rather than a last-minute scramble.
The cornerstone of inspection readiness is robust documentation. Regulators expect comprehensive, timestamped transaction records that include every step of the payment process - from customer verification to transaction approvals and monitoring alerts. Your systems should automatically generate these audit trails, eliminating the need for manual compilation.
Regulatory inspections go beyond paperwork. Inspectors assess your organisation's risk culture, operational transparency, and response protocols. They want to see that compliance is not siloed within one department but is a shared responsibility across the organisation. Leadership involvement in compliance oversight demonstrates this commitment effectively.
Mock examinations are invaluable for testing your readiness. These internal dry runs can uncover documentation gaps, evaluate staff preparedness, and improve inter-departmental coordination. By simulating real inspections, mock exams help identify weaknesses and ensure smoother performance during actual regulatory visits.
"A well-structured reporting system should allow employees to report concerns without fear of retaliation, ensuring that they feel safe to communicate problems or suggest improvements." – Association of Certified Gaming Compliance Specialists
Clear escalation procedures are essential to demonstrate operational control. Regulators expect to see that suspicious activities are flagged, investigated, and resolved according to established protocols. Your documentation should detail not only what actions were taken but also the rationale behind them and who was responsible for decision-making.
Crisis management plans should include strategies for adapting to regulatory changes. Inspectors often look for evidence that your organisation can quickly implement regulatory updates without compromising compliance standards. This requires clear communication channels for compliance matters and established procedures for integrating new requirements.
For operators using advanced payment platforms, real-time monitoring capabilities can give a significant edge during inspections. Tools like Fluid automatically generate detailed audit trails, track compliance metrics in real time, and provide actionable insights that showcase proactive compliance management. This level of readiness often impresses regulators and simplifies the inspection process.
Ultimately, successful inspections depend on treating compliance as an integral part of daily operations rather than an occasional obligation. When compliance is woven into the fabric of your organisation, inspections become a routine validation of your practices rather than a stressful event requiring last-minute preparation.
Conclusion: Long-Term Compliance Success
Navigating cross-border payment compliance is an ongoing challenge for iGaming operators. The regulatory environment is always shifting, requiring systems that can adjust quickly while maintaining efficiency. To meet these demands, operators need a thoughtful strategy that blends the right technology with a compliance-focused organisational culture.
"Increased regulation is always a catalyst for innovation; it can be a real sink-or-swim moment for businesses to adapt, evolve and find creative solutions." - Paul Kavanagh, CEO and Co-Founder of MiFinity
The numbers speak for themselves: operators invest around €5.1 million annually in compliance, while fines for non-compliance can reach up to 10 times that amount. This makes it clear that prioritising effective compliance solutions isn't just a necessity - it's a smart business move.
Platforms like Fluid showcase how AI-driven technology can turn compliance into a competitive edge. By automating transaction monitoring, creating real-time audit trails, and delivering actionable insights, these systems empower operators to oversee operations across jurisdictions without compromising the player experience.
A strong compliance strategy hinges on three essential factors: staying informed about regulatory changes in real time, adopting risk-based approaches to customer due diligence, and embedding compliance into everyday processes. Data governance also plays a crucial role, especially as operators face growing rules around data privacy and sovereignty, which dictate how and where sensitive financial data can be handled.
As the iGaming industry evolves - highlighted by the rapid rise of crypto transactions, which are expected to surpass $150 billion globally by 2026 - adaptability becomes non-negotiable. Payment systems must keep pace with emerging requirements to ensure operators remain competitive in a dynamic global market.
FAQs
What regulations must iGaming operators follow to ensure compliance with cross-border payments?
To operate within the rules for cross-border payments, iGaming operators in Malta need to meet several important regulatory standards. These include following Anti-Money Laundering (AML) laws, adhering to Know Your Customer (KYC) protocols, and complying with the General Data Protection Regulation (GDPR) to protect player information. Operators must also secure the necessary licences for each jurisdiction they serve.
On top of that, strict compliance with payment processing regulations is a must. These rules ensure deposits and withdrawals are managed with both transparency and security in mind. Operators are also required to align with international sanctions regimes to avoid fines or other penalties. Keeping up with regulatory updates is not just about legal compliance - it’s about building trust and safeguarding operations.
How can AI improve fraud detection and ensure compliance with cross-border payment regulations?
AI plays a key role in improving fraud detection and compliance within cross-border payment systems. By using machine learning algorithms, it can sift through transaction data to identify unusual patterns and behaviours. This not only increases precision but also cuts down on false positives, making the process smoother for both operators and players.
Through real-time automation of compliance checks and analysis of large datasets, AI empowers iGaming operators to stay ahead of constantly changing fraud tactics. It also leverages predictive analytics to spot and address potential risks before they become major issues. These tools help businesses navigate regulatory requirements more efficiently, reduce the likelihood of penalties, and protect both operators and players in the increasingly intricate world of global payments.
What key steps can iGaming operators in Malta take to stay compliant with cross-border payment regulations and prepare for inspections?
Key Steps for Compliance with Cross-Border Payment Regulations
iGaming operators in Malta must prioritise compliance with cross-border payment regulations to avoid penalties and prepare for inspections. Here are some crucial steps to focus on:
Strengthen KYC and AML measures: Properly verify player identities and keep a close eye on transactions to detect any suspicious activity. This is essential to meet anti-money laundering (AML) requirements effectively.
Comply with GDPR standards: Establish strict controls for managing personal data and ensure any data breaches are reported promptly, as required by the General Data Protection Regulation (GDPR).
Stay informed on regulations: Familiarise yourself with both local and international licensing and payment processing rules. These can differ significantly depending on the jurisdictions where your operations take place.
Regular audits and staff training: Conduct routine compliance checks and provide ongoing education for your team. This helps reduce risks and ensures your organisation is prepared for any inspections.
These measures not only help operators maintain compliance but also support smooth payment processes for players and safeguard their reputation in the tightly regulated iGaming industry.