This week, the Gambling Division of the Gibraltar Government announced it had completed its 12-month thematic review of the anti-money laundering risk assessment controls and processes of the licensed online gambling companies that offer their services to local customers.
The review has been focused on making sure that operators have adopted robust and adequate anti-money laundering measures that would help them identify and tackle any possible challenges in customer onboarding and ongoing contact in line with Gibraltar’s legislation. The Government’s Gambling Division further shared that the review engaged and analysed historical processes operated by online gambling companies. It also monitored the improvements made by the firms to their anti-money laundering standards during the period.
The Gambling Division found some historic control weaknesses, including some anti-money laundering risk tolerances and some ineffective or slow timing on interventions. A number of companies were also found to have accepted deposits from a person who had misappropriated some funds from their employer and then forged some documents, eventually providing false information to explain their source of wealth.
As a result, some online gambling operators licensed in Gibraltar have agreed to pay a monetary punishment of £2.5 million for their poor anti-money laundering controls. Because of the companies’ cooperation during the investigation, no further action would be taken against them, apart from the aforementioned payment that is to be granted to the Gibraltar Gambling Care Foundation.
Some Online Gambling Companies Agree to Pay £2.5 Million Due to Poor AML Controls
The Gambling Division has also identified other material cases than the ones mentioned above. The authority published a list of recommendations to the gambling industry in Gibraltar as a whole to make sure operators offer their services in compliance with the existing laws.
Gambling companies are required to make sure they conduct proportionate enhanced due diligence on customers who make large deposits no matter if their losses are high. Apart from that, the Gambling Division reminded that operators need to have special systems in place to identify any sudden or significant increases in the transactions. They are also required to make sure they have systems and controls that would ensure adequate ongoing monitoring of customer accounts.
Furthermore, online gambling companies that are licensed here need to have integrated systems and communication channels between different functions in order to make sure all customer interactions can be considered. All staff members have to pass some training in order to be up to date with their anti-money laundering and social responsibility obligations. They are also required to report any suspicious activity in time as they are obliged to do under the provisions of the Gibraltar Proceeds of Crime Act 2015 (POCA).
There is some ongoing uncertainty looming over the online gambling industry of Gibraltar that appeared after the UK decision to leave the European Union. The Brexit-related uncertainty pushed some major gambling companies to move most of their Gibraltar staff to rival jurisdictions such as Malta to make sure they will be able to continue offering their services to continental gamblers after Brexit.
- Author
Daniel Williams
