AML & RG
AML and RG; the quest for information in an EU context
SOME EUROPEAN REGULATORS HAVE SHOWN THEMSELVES TOO WILLING TO CONFLATE ANTI- MONEY LAUNDERING WITH RESPONSIBLE GAMING. KEES-JAN AVIS ARGUES THAT THIS SHOULD BE RESISTED
Overview It is beyond question that Anti Money Laundering (AML) rules and regulations and responsible gaming (RG) with its various practices have become part of doing business for any (online) gambling operator. Both AML and RG requirements rely on the collection of information from clients which is applied in the respective contexts. As such, the two appear similar but are they actually one and the same thing and is information garnered from an AML perspective interchangeable and applicable to RG as well? In order to answer the question a brief history of the two and especially of AML provides some insights. How we got to where we are today AML is ubiquitous where there are transactions involving banks, crypto or any other platform where value is exchanged. AML, especially in Europe, has become such part of the way business is done that it is considered mainstream – when was the last time anyone paid cash for a house or even a car?
However, this was not always the case and an examination of the history and purpose of AML in Europe is instructive when it comes to its application within online gambling industry especially in light of the overlap with information required for RG purposes. The first EU AML directive, 1AMLD, was issued in 1991, 1AMLD. Prior to this point money laundering and the financing of terrorism outlawed under criminal laws in the individual EU countries. The introduction and implementation of 1AMLD elavated AML (financing of terrorism was not included at this point) from a local, per jurisdiction approach to a multilateral approach facilitating international cooperation. 1AMLD was implemented based on the belief that money laundering could affect the soundness and stability of financial institutions and ultimately jeopardize public trust in the financial system. It was initially aimed at avoiding the proceeds of criminal activity, especially drug money, being introduced into the financial system. It was only after the 9-11 atrocity that 3AMLD, introduced in 2005, directly addressed the financing of terrorism bringing into the AML context within the EU.
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IMGL MAGAZINE | JANUARY 2023
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