UK gambling industry has been the most look forward industry for any new initiative for its size and popularity hence every time anything new happens there it becomes the standard for others. The new Money Laundry bill is one such regulation which has been in talk for quite some time now.
Now, Government has made it clear that only holders of casino operating licenses will be subject to the requirements of the new Money Laundering Regulations. The new regulations will come into forces during June of this year, and the new rules will look to tackle money-laundering activities in the UK, and it had been thought that gambling may be one of the areas more heavily targeted. However, to make it not too harsh for small operators, the government has said it will exempt gambling sectors deemed lower risk, with the exception of non-remote and remote casinos that cannot be exempted.
Informing about the decision, the UK Gaming Commission (UKGC) said in a statement: “The government recognizes that the risk levels attributed to a particular gambling sector are not static and will vary over time.
“As a result, where a gambling sector can no longer be deemed low risk. Including where the sector fails to effectively manage the money laundering and terrorist financing risks, then it will likely lead to their inclusion within the provisions of the new regulations, subjecting that sector to its requirements.”
“The UKGC added that it will “continue to work with the industry to raise standards and assess the effectiveness of operator policies, procedures and controls for anti-money laundering.”
Surprisingly, Peter Hannibal, chief executive of the industry-wide Gambling Business Group, has welcomed the decision and he said, “The Gambling Business Group was at the forefront of this debate and hosted Treasury officials on a fact finding tour of a cross section of gaming venues to help inform its’ intelligence gathering process as part of the 4th AMLD.
“There was a very real danger that Britain’s highly regulated, highly responsible, low stake gaming sectors would have become embroiled in a Europe wide, one size fits all, dragnet that was both disproportionate and unnecessary.
“I believe one of the most compelling arguments was the industry’s commitment to the KYC or Know Your Customer philosophy; visitors to UK Gaming establishments will confirm the customer/staff relationship is more like a friendship, making it much easier to identify any changes in behavior and activities which are outside of the norm.”
