The Gambling Commission has announced a consultation to run until the 8 September on proposed changes to their guidance issued to casinos relating to preventing money laundering and the funding of terrorism. The guidance applies to both 'bricks and mortar' and online casinos. It follows changes to the Proceeds of Crime Act 2002 and the introduction of The Prevention of Money Laundering, Terrorist Financing and Transfer of Funds (information on the payer) Regulations 2017.
Proposed key consultation points in relation to the guidance are:
- Changes to the customer due diligence (CDD) threshold, where any transaction of €2,000 or more, whether as a single transaction or via several operations that appear to be linked trigger the CDD requirement. The rules already apply to established business relationships, suspected money laundering or terrorist financing or doubt as to the veracity or adequacy of documents or information previously obtained but now add the €2,000 threshold in relation to CDD. The measures will apply to wagering of stakes, purchase of tokens, payment for use of gaming machines, the deposit of funds for remote gambling and also to the collection of winnings and withdrawal of funds. 'recycled' winnings, 'turnover' or 'churn', however the operator defines re-invested winnings, are not included in the calculation for the €2,000 threshold. Existing rules requiring CDD measures to be applied at other times on a risk-based approach and also where the operator becomes aware that the circumstances of existing customers have changed to be retained.
- Money Service Business activities in non-remote casinos to remain supervised by the Gambling Commission, rather than being jointly administered by the GC and HMRC.
- The outsourcing of 'nominated officers' will no longer be permitted following changes to the Regulations.
- Politically Exposed Persons (PEPs) definition has been expanded in the Regulations to include UK individuals entrusted with prominent public functions. Enhanced CDD will be required for UK citizens with such roles as well as overseas citizens.
- Changes to the guidance and when reliance on third parties and simplified CDD will be permitted.
Details of the consultation can be found here.