The Financial Monitoring Agency (FMA) of Kazakhstan has referred a case to court involving a group accused of providing payment infrastructure for unlicensed iGaming operators Nomadgames and Sultangames. The agency reports that the turnover connected to these operations exceeded 188 billion Kazakhstani tenge.
Bank Staff Allegedly Enabled Unlawful Transactions
According to the FMA, members of the group included bank employees who issued internet payment terminals without mandatory checks. These terminals were assigned merchant category codes (MCC) that allowed payments to appear as legitimate betting or other lawful activities, masking their true purpose.
Complex Money Laundering Scheme Uncovered
The investigation found that the group transferred 10 billion tenge to an affiliated company under a fictitious contract. The funds were subsequently converted into cryptocurrency. The total movement of digital assets related to the case reached 19 million USDT, a stablecoin pegged to the US dollar.
Assets Seized and Suspects Detained
Kazakhstani authorities have seized assets and funds worth 1.4 billion tenge from those implicated. Three individuals are currently in custody as the judicial process unfolds.
Implications for Operators and the Industry
This development highlights the scrutiny faced by unlicensed operators and those facilitating illegal payment flows in regulated markets. The case signals increased enforcement efforts against financial schemes that circumvent local gambling laws, with potential impact on operators, affiliates, and payment providers operating in or with links to Kazakhstan.
Key takeaways
- Kazakhstan's FMA has sent a case to court over illegal iGaming payments tied to Nomadgames and Sultangames.
- Bank staff allegedly issued terminals that enabled disguised gambling transactions.
- Authorities uncovered a money laundering operation involving crypto assets.
- Significant assets have been seized and several suspects are in custody.