Compliance Updates
EGBA Welcomes Confirmation Of Frankfurt As Seat Of New EU Anti-Money Laundering Authority
The European Gaming and Betting Association (EGBA), the association representing Europe’s leading gambling operators, welcomes the recent confirmation of Frankfurt as the seat of the new European Anti-Money Laundering Authority (AMLA). This agreement, reached by the EU institutions, creates a European anti-money laundering authority which will operate together with, and in addition to, the already existing national anti-money laundering (AML) authorities of the EU member states.
AMLA, which will commence operations in mid-2025 with over 400 staff members, will possess both direct and indirect supervisory powers over obligated entities, including the EU’s biggest financial institutions. With the power to intervene in cross-border cases, AMLA is expected to provide comprehensive guidance that further harmonises AML rules and their application, including creating a standardised reporting template for Suspicious Transaction Reports (STRs), which will greatly benefit various sectors, including gambling, by standardising reporting formats across EU countries.
The establishment of AMLA as a new authority is a fundamental part of the ongoing reform of the EU’s anti-money laundering framework, which is expected to be finalised and agreed by the EU institutions before the end of the current EU mandate in June 2024.
As the EU finalises the new AML legislative package, EGBA has developed industry-specific guidelines on anti-money laundering to help online gambling operators comply with the AML rules in the EU, including the upcoming EU AML Regulation. Developed collaboratively with our members, the guidelines offer a risk-based approach and include practical direction for operators in areas such as risk assessments, customer due diligence processes, suspicious transaction reporting, and record-keeping.
To ensure the effectiveness of the guidelines, EGBA members will engage in regular discussions on their implementation and are obliged to submit annual reports to EGBA summarising their progress. To promote transparency and accountability, these regular discussions and reporting will help to identify and address potential issues or areas for improvement in the guidelines and ensure they remain up to date with the latest developments. Other operators are invited to adopt the guidelines and participate in the reporting requirements.
“We welcome Frankfurt as the chosen seat of the new European Anti-Money Laundering Authority. Given the city’s position as the centre of European finance, it is a logical choice. We look forward to collaborating with AMLA to ensure the representation of the gambling sector’s voice in future EU-level AML discussions and help contribute positively to the fight against money laundering. The standardisation of STRs will really benefit gambling operators, particularly those who operate in many countries, because there are currently many different reporting formats across EU member states. By implementing our AML guidelines, operators can also already be well positioned for the EU’s incoming AML rules and play their part in raising standards across the industry.” – Dr. Ekaterina Hartmann, Director of Legal and Regulatory Affairs, EGBA.
Source: EGBA
JCM Global announced that it has successfully passed regulatory review and received a manufacturer’s license from the West Virginia Lottery Commission. The license enables JCM to directly sell to and service customers in the state.
“At JCM, we are committed to our customers. While attaining licensing was not required, we pursued it because it allows us to directly provide JCM’s leading technology and advanced systems, backed by our world-class service, and support, resulting in faster service times and simplifying the entire relationship between JCM and our customers,” said JCM SVP – Sales, Marketing & Operations Dave Kubajak in a statement.
JCM recently announced it has attained licenses in Colorado and New Mexico, bringing the company’s total number of active gaming licenses to 177.
In West Virginia, JCM will provide technology, including the iVIZION bill validator; ICB Intelligent Cash Box System, which boosts security and efficiencies across the gaming floor; and the GEN5 thermal printer, which delivers TITO, personalized promotions, and rewards directly to the player.
Australia
AUSTRAC Takes Ladbrokes and Neds’ Operator – Entain – to Federal Court Over Serious Non-compliance with Australia’s Money Laundering Laws
AUSTRAC commenced civil penalty proceedings in the Federal Court against Entain Group Pty Ltd (Entain), which operates online betting sites including Ladbrokes, Neds and other online betting brands. The proceedings allege serious and systemic non-compliance with Australia’s anti-money laundering and counter-terrorism financing (AML/CTF) laws.
AUSTRAC CEO Brendan Thomas said the agency considers there were systemic failures in Entain’s approach to its AML/CTF obligations.
“AUSTRAC’s proceedings allege that Entain did not develop and maintain a compliant anti-money laundering program and failed to identify and assess the risks it faced. We are alleging this left the company at serious risk of criminal exploitation.
“Money laundering is often a symptom of serious criminal activity, including fraud, scams and corruption, all of which have equally serious effects on our communities,” he said.
AUSTRAC’s allegations include that:
• Entain’s board and senior management did not have appropriate oversight of its AML/CTF program, which limited its ability to identify the ML/TF risks it faced and its vulnerability to criminal exploitation.
• Entain operated a 24/7 business through its website and app, which created risks that persons unknown to Entain could access and use Entain’s betting platform including through third party providers.
• Third parties, including businesses and individuals, accepted cash and other deposits on behalf of Entain to be credited into betting accounts in ways that could obscure the proceeds of crime. Cash is less transparent than other forms of money and is at higher risk of being the proceeds of crime.
• Entain did not have appropriate controls to confirm the identity of customers making these deposits and the source of this money.
• Entain did not conduct appropriate checks on 17 higher risk customers, including examples where Entain did not appropriately deal with the risk that its online betting sites were being exploited by criminals to spend the proceeds of serious crime. This includes allegations that Entain deliberately obscured the identity of some high risk customers, on its own systems, through the use of pseudonyms to “protect their privacy”.
“This is the first time AUSTRAC has brought civil penalty proceedings against businesses operating in the online betting sector, and the Australian arm of Entain is part of one of the world’s largest sports betting and gaming groups,” Mr Thomas said.
“The online betting sector, and all other businesses regulated by AUSTRAC, must take their AML/CTF obligations seriously. This includes ensuring they have appropriate procedures to know who their customer is, even when they rely on third parties to process transactions.”
The action taken is part of AUSTRAC’s ongoing work focussed on gambling businesses in Australia to fight money laundering opportunities in the gambling industry. Following the Federal Court ordering Crown pay $450million in penalties over 2 years in 2023, this year AUSTRAC has seen the Federal Court order SkyCity to pay $63M penalty for breaches to the AML/CTF Act, accept an enforceable undertaking from Sportsbet, continue the Federal Court case against Star and are continuing the regulatory focus on a number of other gambling entities across Australia.
Additionally, the launch of the money laundering National Risk Assessment this year highlighted the highly exposed nature and vulnerability to money laundering online betting agencies face. This valuable resource has been developed support business better understand and develop appropriate measures to mitigate their risks.
It is now a matter for the Federal Court of Australia to determine whether Entain contravened the Act and, if so, what orders to make. AUSTRAC will not provide further comment on this enforcement action while the matter is before the Court.
Non-confidential Court documents related to the Entain matter will be available on the enforcement actions taken page in due course.
“AUSTRAC continues to actively driving out money laundering opportunities in Australia’s gambling industry and we’ll be tireless in our efforts to remove the ability for criminal to use our financial system to their own gain,” Mr Thomas said.
The post AUSTRAC Takes Ladbrokes and Neds’ Operator – Entain – to Federal Court Over Serious Non-compliance with Australia’s Money Laundering Laws appeared first on European Gaming Industry News.
Thailand’s National Anti-Corruption Commission (NACC) has initiated an investigation into former Royal Thai Police commissioner-general Pol General Torsak Sukvimol and seven others for alleged bribery linked to illegal gambling operations.
According to Thai media, this decision follows accusations that Torsak demanded money and assets from 18 gambling websites and other illicit businesses during his tenure as national police chief from October 2023 to September 2024.
NACC secretary-general Sarote Phuengramphan stated that sufficient evidence, including witness testimonies, has been gathered to justify the investigation, with the commission overseeing the inquiry.
In addition, the NACC is examining separate allegations against former deputy national police chief Pol General Surachate Hakparn, who is accused of accepting bribes from gambling sites and involvement in money laundering. Sarote indicated that more information is needed before proceeding with this case.
Torsak had been suspended in March due to conflicts with Surachate but returned to duty in June until his replacement by Pol General Kitrat Phanphet on October 1. Surachate, known as “Big Joke,” was removed from his position by royal command.
The post Former Thai Police Chief Torsak Faces Investigation for Bribery appeared first on European Gaming Industry News.
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