UKGC Publishes Fourth Edition of Anti-Money Laundering Guidance

The United Kingdom Gambling Commission (UKGC) published its fourth edition of gambling industry advice on fighting the terrorism financing and preventing money laundering.

This document is based on recommendations by the Financial Action Task Force (FATF). It is an EU intergovernmental organisation introducing procedures and frameworks to fight terrorism financing as well as money laundering.

Up until now, anti-money laundering (AML) legal frameworks centered on the wide-range detection and prevention of AML as a means to fund criminal activities.

However, now the UKGC is asking their licensed gambling operators to introduce policies that would cover risks brought by terrorism financing and money laundering.

The UKGC states that money laundering which happened within gambling companies up until now principally had two forms:

• criminal spend - when stolen funds are used to gamble as a part of leisure activity
• classic money laundering - when stolen money is processed through any kind of legal business

There are seven main points in the 2019 UKGC's guidance:

• suspicious activity monitoring and record keeping
• customer due diligence
• nominated officers
• responsibility of senior management
• customer relationships
• risk-based approach

The commission stresses that operators must continue to adhere to the three main principals introduced with the Gambling Act in 2005:

• Do not let gambling become a cause of disorder or crime
• Do not associate with criminal activities
• Ensure that business products and structures cannot be used to support illegal activities.

Let us not forget about The Proceeds of Crime Act. Casino operators must always report to the National Crime Agency if they noticed or suspect that their customer is financing terrorism or involved with money laundering activities.

It is worth noting that UKGC still holds the same position when it comes to businesses reporting suspected AML or CTF activities. The official gambling commission document states that "there is no minimum financial threshold for the management and reporting of known or suspected money laundering or terrorist financing activity."

Executive officers must have adequate authority and knowledge to prevent both CTF and AML activities as soon as they are detected.

Gambling rules and regulations in the UK are getting stricter every year, and it is always good to know the latest changes the UKGC is making. Follow us for more legal news and updates.