New German Anti-Money Laundering Act - impact on gambling operators

A new law against money laundering (AML Act or "Geldwäschegesetz" = GWG) came into force in Germany. The new law implements LMA LMA Fourth Directive to the German legislation. It has serious repercussions on active gaming companies in Germany.

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The new AML law offers three major changes in gambling companies:

•     Extending the scope of online gambling for online gambling and licensing of matching gambling without a license
•     The revised AML measures are detailed
•     Extended catalog of administrative infractions with higher administrative fines (up to 1 million euros)

In detail

The extension of the scope of the law

The former AML Act applies to online casinos and brick and mortar casinos - if allowed in Germany. The scope of the new AML law extends in two ways:

•     The scope of the new AML Act essentially includes all gaming sites - online and offline
•     In addition, the legislator intends to apply the new AML law to all gaming companies in Germany - with or without a license

However, there are notable exceptions. Some gambling services are exempt from the new AML because of their low money laundering risk. These services are not required to apply AML measures:

•     Slots in slots and pubs (but not in casinos)
•     The horse racing associations Paris as a totalizing (but not paris offered by the bookmakers)
•     Social lotteries and licensed state lotteries - this includes both online and off-line

However, it requires online casino games and especially sports betting under the new AML law. This is regardless of whether they are allowed, tolerated or even without a license. In the case of sports betting, even without regard to the type of service - transaction or intermediation - and also regardless of location - on the Internet or in sports betting shops.

Revised AML measures

Newly liable obligors are facing a multitude of AML measures to abide by. First and foremost, they have to put into practice the "Know Your Customer" (KYC) procedures based on an identification record. For off-line gaming services, this applies from a threshold of 2,000 euros (capital gains or items). Online gambling services do not enjoy this privilege - they must identify their customers from the beginning. However, the new AML Act allows you to choose customer knowledge processes that fit the game rules. It is a relief for forced online game operators because they are allowed to join a diet alone. I know you already know the regulation of games of chance.

Govt seeks anti-money laundering compliance info from brokers

Distributors were asked to provide details of their compliance with the various requirements in the fight against money laundering as the government intensifies its efforts to address the threat of black money.

As part of the fight against Shell companies, the Ministry of Finance requested detailed information on dealers to understand their compliance levels in terms of anti-money laundering and terrorist financing regulations.

Following a directive from the Ministry of Economy, market regulator Sebi has asked the dealers to present the relevant details of the same month.

Information was sought on the areas of "Anti-money laundering and countering the financing of terrorism (AML and CFT) to assess technical compliance with FATF global recommendations and the effectiveness of AML / CFT systems."

Details must be provided by distributors during the last three years.

As required by Sebi, Premier EEB asked traders registered with him to provide the information.

Details are to be submitted for 2014-15, 2015-16 and 2016-17, according to a circular issued by the BSE.

Distributors must keep data updated in a separate format prescribed for each fiscal year.

Brokers should receive information on the total number of employees in the organization, number of employees certified in AML / CFT areas, percentage of employees who received "in-house" training in AML / CFT areas and percentage employees Who are familiar with the investigations of the AML / CFT guidelines for each of the last three financial years.

The total number of employees includes administrative and supervisory frameworks at senior management level, but should exclude executives and senior officials.

"In-house training indicates sessions lasting at least an hour in the ALM / CFT areas, carried out by the organization for the benefit of its employees as part of its internal learning training programs / workshops," said EEB said.

"Employees who are familiar with the AML / CFT guidelines can be determined from conducting surveys in different areas and regions. Research reports should include the size of the study group. To this return, "he added.

The Financial Action Task Force (FATF), an intergovernmental body, sets a global standard for money laundering and anti-terrorist financing regulations of governments around the world. India has been a member since 2010.

The FATF Recommendations are recognized as the global AML / CFT standard.