WILLEMSTAD – Curaçao’s online gambling sector, a global leader in iGaming, is under increased scrutiny due to concerns over money laundering vulnerabilities, according to a recent report on criminal threats in the Caribbean. The report highlights that Curaçao’s offshore gambling industry has long been criticized for its lack of oversight and regulatory gaps, making it a potential conduit for illicit financial activities . 

The Caribbean region, including Curaçao, remains attractive for money laundering due to cash-intensive economies and regulatory loopholes. The Basel Anti-Money Laundering (AML) Index has flagged almost all Caribbean nations as high-risk for financial crimes. While other Caribbean nations such as St. Kitts and Nevis have faced similar concerns in their gaming sectors, Curaçao’s online gambling industry stands out due to its vast scale and relatively lenient licensing process . 

In response to repeated criticisms, Curaçao has been working to reform its gambling sector by introducing new regulatory measures. The country recently reopened its online gambling licensing portal under updated compliance standards aimed at strengthening financial oversight and preventing the misuse of its industry for money laundering . 

Experts argue that effective regulatory changes are critical, as online gambling platforms can facilitate cross-border financial transactions that are difficult to trace. By enhancing oversight, Curaçao aims to address international concerns while maintaining its position as a major hub in the global iGaming industry. However, it remains to be seen whether these reforms will be sufficient to mitigate money laundering risks and improve the country’s standing in global financial compliance rankings. 

This latest development underscores the growing global pressure on small jurisdictions with significant offshore industries to tighten financial regulations and prevent illicit financial flows.