Safaricom Strengthens AML Compliance as AI Exposes Betting-Linked Laundering
Safaricom has revealed that it detected instances of money laundering linked to betting platforms using its M-PESA mobile money service, following the rollout of new artificial intelligence tools aimed at strengthening financial compliance. The disclosure came as the telecommunications giant unveiled its 2025 Sustainable Business Report in Nairobi, highlighting its ongoing efforts in governance, transparency, and ethical business practices.
In the report, Safaricom confirmed that its enhanced anti-money laundering (AML) systems had “detected money laundering through betting platforms” and “flagged suspicious international money transfers.” The company said it has implemented real-time monitoring, machine-learning detection models, and sanctions screening tools to identify irregular financial activity and bolster oversight across its vast M-PESA ecosystem. The upgraded system allows Safaricom to analyze millions of transactions daily, spot abnormal patterns, and promptly alert regulators to potential risks.
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“We deployed real-time monitoring, machine-learning detection systems, and sanctions screening to identify suspicious activities,” Safaricom stated in the report. “Compliance with Ultimate Beneficial Ownership verification and regulatory reporting requirements remains a priority.”
Kenya’s betting industry, one of the most dynamic in Africa, has become a focal point for regulators due to the sheer volume of money moving through digital wallets. M-PESA, which processes over 10 million transactions daily worth around $200 million, is the backbone of these payments, making it a potential target for exploitation by criminal networks.
Safaricom’s findings support earlier warnings from the Financial Reporting Centre (FRC) and Central Bank of Kenya, which have classified the gaming sector as high-risk for money laundering. Authorities have expressed concern that some operators may be blending legitimate betting proceeds with illicit funds from crimes such as corruption, cyber fraud, and drug trafficking.
While Safaricom did not name any specific betting companies, its report confirms that AI-driven monitoring has already identified red flags consistent with suspicious financial activity within the industry.
During the Safaricom Sustainability Summit 2025, Chief Executive Officer Peter Ndegwa said the company is leveraging artificial intelligence to strengthen transaction integrity across M-PESA. He noted that advanced analytics now allow Safaricom to “detect anomalies faster and safeguard the ecosystem against abuse.”
