Key Updates from the Gambling Commission – 24th May 2024

The Gambling Commission has draw attention to recent updates impacting anti-money laundering (AML) requirements, the treatment of politically exposed persons (PEPs), and regulations on high-risk third countries. Here’s a brief overview of the key changes:

1. Treatment of Politically Exposed Persons (PEPs)

The amendments to The Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 now require that “domestic PEPs must still be subject to enhanced customer due diligence (ECDD) measures, but should be treated as lower relative risk than non-domestic PEPs.” This distinction can change if other risk factors are present, necessitating adjustments in casino policies (See link).

2. DAML Exemption Provisions

The Economic Crime and Corporate Transparency Act 2023 introduces new exemptions for the DAML process. According to the updated regulations, “casinos can transfer funds below £1,000 to exit a customer relationship without submitting a DAML, provided due diligence measures are met.” Additionally, casinos can now ring-fence suspected criminal funds while transacting with other funds (See link).

3. High-Risk Third Countries

The definition of high-risk third countries has been revised. High-risk countries are now those listed by the Financial Action Task Force (FATF) as “Jurisdictions Under Increased Monitoring” or “High-Risk Jurisdictions subject to a Call for Action.” Casinos must regularly consult these FATF lists to ensure compliance (See link).

4. LCCP Update: New PML Requirements

The latest update to the Licence Conditions and Codes of Practice (LCCP) mandates that specific management positions within gambling operators hold Personal Management Licences (PMLs). From 29th November 2024, roles such as CEOs, Managing Directors, and those responsible for AML and counter-terrorist financing (CTF) functions must hold a PML. This includes individuals responsible for reporting suspected money laundering activities (See link).

Preparing for Compliance

Gambling operators should:

• Update AML policies to reflect the new treatment of PEPs.

• Adjust DAML procedures for the new exemptions and fund handling rules.

• Monitor FATF updates regularly for changes in high-risk third countries.

• Ensure PML compliance by preparing for the new requirements by November 2024.

Staying informed and proactive with these regulatory changes is crucial for maintaining compliance and mitigating money laundering risks. For more detailed guidance, refer to the Gambling Commission’s updates.

For further insights, and to keep updated visit Luke ARC’s blog page. Or contact Luke ARC for a free consultation.