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New rules to tackle crime linked to gambling

Credit Risk & Affordability Fraud & Verification

Online Gaming_shutterstock_299107145_2Following the recent announcement from the UK Gambling Commission (UKGC) relating to new rules to help prevent crime in gambling, which will come into force from autumn 2016, we take a brief look at some of the implications regarding anti-money laundering (AML) to meet the implementation schedule.

The revised rules are the output from a UKGC led consultation completed in 2015 and continue the journey of keeping the industry focussed on its social responsibilities and crime prevention.  With regard to AML, the UKGC position is that, through casework and engagement with the industry, the regulatory tools and industry’s controls could be stronger.

Anti-money laundering (AML)

The result is a new licence condition which incorporates requirements to review the risks to an operators business being used for money laundering and terrorist financing.  This includes changes of circumstance, such as customer demographic, new methods of payment and that the risk assessment must be reviewed at least annually.

This remains a risk based approach and enables the operator to continue to identify and manage the risks to their own business, rather than UKGC prescribing a one size fits all approach.  It could be argued that this approach might lead to one operator losing customers to another if operators are implementing different thresholds or less rigid checks.

Customer monitoring across platforms and products

The consultation queried whether recognising, linking and monitoring customers gambling activity across different areas of a business would provide operators with a more comprehensive picture of the money laundering risk they may face.  This requirement has been embedded into the overall AML assessment with the commission expecting operators to adapt their approach as technology and data analytics continues to develop.  Whilst the industry rightly points to practical obstacles in achieving this level of insight, the responses to the consultation confirm that this is a desirable aim, from both a money laundering, social responsibility and commercial perspective.  The expectation of licensees is that they make every effort to monitor individual customers across their entire business, especially where the licensee has identified individuals as high risk in terms of money laundering

Due Diligence

UKGC stated that licensees often do not take adequate measures to establish customers’ source of funds, particularly relevant where the initial assessment indicates a higher money laundering risk than other customers.  The findings of the consultation again embed this requirement into the AML new licence condition to assess and manage risk.

With a range of solutions that enable single customer view, AML checks, know your customer, source of funds checks and enhanced due diligence to be conducted talk to a member of the Callcredit Gaming team about how we can help you fulfil these requirements by autumn 2016.

Email: gaming@callcreditgroup.com

Author: Mel Prescott

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