The European Council yesterday approved the EU’s new anti-money laundering (AML) package, marking the finalisation of the EU’s new framework for combatting financial crime. The Council’s approval is the final step in the EU legislative process, following the European Parliament’s approval last month. The European Gaming and Betting Association (EGBA), representing Europe’s leading online gambling operators, welcomes the finalisation of the new AML package and believes the incoming rule changes will strengthen the EU’s approach to tackling money laundering.

The final legislative package provides for:

• The establishment of the European Anti-Money Laundering Authority (AMLA) – based in Frankfurt, AML will have direct and indirect supervisory powers to ensure compliance with AML requirements, working in tandem with national AML authorities. AMLA will be responsible for a large amount of technical and implementing rules that will directly apply to the online gambling sector.
• The 6th Anti-Money Laundering Directive – containing national provisions on supervision and the powers of national AML authorities, including their access to requisite and reliable information such as beneficial ownership registers.
• A new Anti-Money Laundering Regulation (AMLR) – encompasses requirements for conducting due diligence, transparency of beneficial owners and much more, directing practitioners through the whole AML process for obliged entities. The regulation sets a limit of €2000 for conducting due diligence on players for online gambling operators.

A key feature of the new package will be the creation of a harmonised reporting format for Suspicious Transaction Reports (STRs),[1] overseen by AMLA. This will mean that Europe’s online gambling operators will encounter the same STR requirements across all EU member states, setting consistent requirements that will reduce administrative burdens and costs.

To assist online gambling operators, EGBA has developed industry-specific guidelines on anti-money laundering which apply a risk-based approach and include practical measures that operators can take to ensure compliance with the AML rules in the EU. EGBA members already apply the guidelines and submit annual reports to EGBA that summarise their progress in implementing its measures. The guidelines are also open to all operators based in the EU and EGBA encourages operators to sign up to them.

Since the guidelines take into account the European Commission’s original AMLR proposal, EGBA members are already making significant progress towards compliance with the new EU rules. The guidelines will be updated to match the final versions of the EU legislation.

The new AMLR will enter into force three years after its publication in the Official Journal of the EU, which is the next step in the process.

“We welcome the finalisation of the new anti-money laundering package. EGBA has actively followed and contributed to the revision of the AML rules at EU-level and believes the new rules will benefit Europe’s online gambling operators, especially those operating in multiple jurisdictions, by ensuring a single regulatory approach across EU member states. With finalisation of the new rules, EGBA will review and update its industry guidelines on AML to ensure their alignment with the rules. By signing up to the guidelines, operators can begin preparing themselves for the EU rule changes and join our members in their efforts to proactively and positively contribute to the fight against money laundering in the EU.” – Dr. Ekaterina Hartmann, Director of Legal and Regulatory Affairs, EGBA.

If you are an EU-based online gambling operator and are interested to participate to EGBA’s industry guidelines on AML, please contact us.