The second part of the implementing procedures on the anti-money laundering and prevention of funding of terrorism regulations for gaming companies have been published.
The Financial Intelligence Analysis Unit (“FIAU”) in conjunction with the Malta Gaming Authority (“MGA”) have issued, on the 19th of July 2018, the second part of the implementing procedures addressed specifically to the gaming sector. These implementing procedures aim to provide guidance to the industry.
The implementing procedures incorporate additional amendments motivated by the feedback received in view of the consultation document issued on 10 July 2017. The procedures further acknowledge and address relevant concerns expressed by gaming licensees.
Revised Anti-Money Laundering (AML) Proposals
The main revised proposals primarily focus on due diligence measures required for the identification of players and their source of wealth. An increased level of emphasis is placed on the risk-based approach to be used by subject-persons within the sector, who are to assess the risks of particular engagements and apply enhanced due diligence procedures to higher-risk situations.
Of particular interest is the threshold mechanism used by the implementing procedures. When customers execute a series of transactions which, cumulatively or individually, meet or exceed the threshold of €2,000. Licensees are to apply a minimum level of customer due diligence (“CDD”) prior to the threshold being reached, after which, a licensee is to at least identify the customer by collecting the minimum standard of personal details. Clearly, this entails that a licensee has procedures in place which allow for on-going monitoring even before the threshold is reached, so that the licensee will be able to determine, among other things, the specific moment when the threshold is met by a customer. The Implementing Procedures also detail the requirement of enhanced due diligence (“EDD”), to be carried out in situations involved politically exposed persons (“PEPs”) regardless of the outcome of a typical customer risk assessment.
The application of AML/CFT obligations to licensees providing a gaming service, does not exonerate other operators active within the gaming sector, including providers of critical gaming supplies, from the general obligation at law to ensure that any entities with which they enter into a business relationship are duly authorised or licensed in terms of law.
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