The FIAU issues Implementing Procedures – Part II, aimed at the Remote Gaming Sector

Background

The implementing procedures which were drawn up in conjunction with the Malta Gaming Authority, provide guidance and focus on certain aspects of the Prevention of Money Laundering and Funding of Terrorism Regulations (“PMLFTR”) and the application thereof. The purpose of Part II is to further elaborate the contents of Part I of the Implementing Procedures and to ensure that these procedures are clearly understood and interpreted consistently by licensees.

Although limited to licensees providing a gaming service, these obligations do not exonerate other operators active within the gaming sector, including providers of critical gaming supplies, from the general obligation at law to ensure that those entities with whom they enter a business relationship with for the latter to ultimately provide a gaming service, are duly authorised or licensed in terms of law and if such entity is not subject to these implementing procedures, they should also ensure that such entity is of good standing and subject to equivalent AML/CFT safeguards.

Risk-Based Approach

In adopting a risk-based approach, a risk assessment is to be carried out at different stages of the conduct of gaming activities by the remote gaming licensees, as well as customer-specific risk assessments in order to develop a risk profile. The latter is to be carried out either prior to the carrying out of an occasional transaction or, in the case of a business relationship, not later than 30 days from when the pre-established threshold, (i.e. €2000) is met. Licensees are also expected to revise their business risk assessment whenever there are changes to the environment within which they are operating and within their business structures/activities. In absence of this, licensees must assess their business risk assessment at least once a year.

These Implementing Procedures are to be taken in conjunction with broader AML/CFT obligations, as arising from applicable legislation.

Part I of the Implementing Procedures are still also applicable to licensees in so far as they are not in conflict with Part II.