It wouldn’t matter if he lost the 1.4million since it then becomes casumo’s money and thus can’t be money laundering or anything untoward.
It’s a different story when they 1.4million needs to be paid back since they have to check everything was legitimate and wasn’t used for laundering any money etc.
A selfie is also needed to make sure the original documents you sent in are real, it’s pretty easy to fake a passport photo but a lot harder if you have to take a photo with you holding the passport.
Long story short – it’s their job legally to make sure they aren’t breaking any laws or facilitating any crimes especially when they were fined something like £20m last time UKGC were involved.