Compliance Updates
How Curacao new AML requirements differ from other flexible license jurisdictions
By: Dmitry Hotsyn, Senior Consultant and Head of CIS Desk at 4H Agency
Discussing Anti-Money Laundering (AML) rules in a way that keeps everyone awake is a real challenge. The iGaming industry often overlooks anything filled with jargon like KYC, AML, CDD, and SoWs—terms that just breed myths and misconceptions about jurisdictions supposedly having lax AML standards and low compliance burdens. For a while, Curacao was viewed as one of these almost mythical places.
Not anymore.
A significant shake-up has occurred with Curacao’s latest overhaul of its AML regulations, set to take effect on September 1, 2024. This update has triggered quite a bit of debate among gambling operators who view these new rules as unwelcoming, especially since Curacao is known for its sluggish pace in updating its gambling regulations.
But may it really be as bad as Curaçao’s deadline management?
Curacao’s AML Regulatory Changes: An Overview
Curacao is continuously revamping its regulatory frameworks, taking a page from Malta’s book — Maltifying the industry may work best to describe this process. The new AML rules, while perceived as burdensome, are in fact a balanced update alligning the Curacao practices with generally acceptable standards. Key aspects of the new regulations include:
- Clear Customer Due Diligence (CDD) thresholds: Operators must conduct CDD at the earliest practical time, but no later than when a player engages in a transaction amounting to approximately EUR 2200;
- Sanction and Politically Exposed Persons (PEP) Screening: Mandatory for at least EU, US and UN sanctions lists;
- High-Risk Indicators: A detailed list of indicators for high-risk cases has been provided, noting that the use of cryptocurrencies increases risk, though it is not outright prohibited;
- AML Officer Role: Each operator shall have a dedicated AML officer, equipped with sufficient resources and headcount to manage risks effectively;
- Policies and Guides: Ah year, more internal docs, rules and practice guides are expected from the operators holding licences in Curacao.
Despite the extensive nature of Curacao’s new rules, in essence, they closely resemble those enforced in Malta and other EU countries, as well as competing jurisdictions offering flexible licenses. The upcoming webinar hosted by 4H Agency and Hipther Agency will delve into these comparisons, focusing on jurisdictions like Anjouan, Kanawake, and Tobique, alongside Curacao.
Key Insights on AML Across Jurisdictions
- Detailed AML Frameworks: Curacao and Tobique lead with the most comprehensive AML regulations. Kanawake’s requirements are also robust albeit not as detailes as Curacao rules;
- CDD Thresholds: Similar financial thresholds exist across these jurisdictions (approximately EUR 2000), with varied stipulations on the timing of CDD post-player registration (again, Curacao is not the leader here);
- Outsourcing AML Functions: All jurisdictions permit outsourcing some AML activities to third-party providers, providing flexibility in compliance strategies;
- Stringency of Regulations: Tobique’s regulations are notably stringent, casually requiring additional checks like adverse media searches to identify higher risk profiles;
- Anjouan the Outlier: Anjouan stands out for its outdated AML framework, lacking specific provisions for the gambling sector. For now, this could attract operators seeking more AML-friendly environments. However, Anjouan will inevitably follow the Curacao’s reformatory steps if the country intends to make iGaming an important factor of the now-struggling economy.
The evolution of AML regulations in Curacao represents a predictable shift towards more robust regulatory environment, aligning more closely with global standards. While initially perceived as onerous, these changes are in line not only with international practices, but with the rules already in force in a competing jurisdaction.
Our upcoming webinar will further explore these developments, providing attendees with comprehensive insights into flexible licensing options in 2024.
The post How Curacao new AML requirements differ from other flexible license jurisdictions appeared first on European Gaming Industry News.
Former New Jersey Governor Chris Christie has backed Texas to legalise online sports betting in the state’s next legislative session.
Christie helped pave the way for sports betting liberalisation across the US by bringing the Supreme Court case that led to the repeal of PASPA.
The case was fought and won by prominent conservative lawyer Ted Olson, who Christie hired to argue the case for states to make their own decisions on sports betting. Olson died last week at the age of 84.
After Missouri became the 39th US state to legalise sports betting in some capacity, attention has quickly turned again to the big three states of Texas, California, and Florida.
“I think it’ll happen in Texas in the next legislative session,” said Christie, speaking to Covers.com. The next session is due to commence in Texas on January 14, 2025.
Christie is less confident about California, however, where competing sports betting ballots failed in 2022 amid a bitter dispute and lobbying war between online operators and local tribes.
California is seen as essential to the future prospects of US sports betting operators, given its size and wealth and dramatic impact on the country’s total addressable market (TAM).
“I don’t know about California,” said Christie. “This really takes gubernatorial leadership, and Gavin Newsom has got to decide if this is one of the issues he wants to lead on.
“Without gubernatorial leadership, the legislature won’t do it because they’re pulled like taffy in too many directions by too many different interests. Without the governor pushing for it, I just don’t think it’ll happen.”
Despite another potential setback in California, Christie has backed sports betting to penetrate pretty much every state eventually.
“I really believe sports betting is inevitable to go just about nationwide, because people in America love their sports, they just do,” he said. “I think it is in the leagues’ best interests to grow their audience. The government gets some piece of the pie out of that which they enjoy, and the public seems to be pretty happy for the most part.”
Depending on expansion, US sports betting could, in theory, reach every state. It would then become a national issue, but Christie has warned the federal government not to interfere.
“Let the states handle it,” he said. “The states are doing fine. You haven’t heard of anything awful or irreversible happening since each state has been involved and they should have the ability to decide whether they want gambling or not.
“I don’t think the federal government should have anything to do with it and I don’t think they ever should have. I don’t think they have to be babysitters for the governors of the country.”
Compliance Updates
Spillemyndigheden Calls Attention to FATF’s Updated Lists of High-risk Jurisdictions
The Danish Gambling Authority has called attention to FATF’s (Financial Action Task Force) updated lists of high-risk jurisdictions: the Grey List (jurisdictions under increased monitoring) and Black List (call for actions). Among other things, gambling operators must include FATF’s lists of high-risk jurisdictions when risk assessing players.
Jurisdictions listed on the Grey List are Algeria, Angola, Bulgaria, Burkina Faso, Cameroon, the Ivory Coast, Croatia, DR Congo, Haiti, Kenya, Lebanon, Mali, Monaco, Mozambique, Namibia, Nigeria, the Philippines, South Africa, South Sudan, Syria, Tanzania, Venezuela, Vietnam and Yemen.
Jurisdictions listed on the Black List are Democratic People’s Republic of Korea, Iran and Myanmar.
Gambling operators are required to conduct enhanced customer due diligence (EDD) pursuant to section 17(1) of the Danish AML Act, if a player is assessed to impose a higher risk of the gambling operator being misused for money laundering or terrorist financing.
Gambling operators shall conduct this risk assessment based on Annex 3 to the AML Act (high-risk factors) which includes the FATF high-risk country lists (the so called black list and grey list).
It is not required that gambling operators perform EDD if a country is listed on the FATF’s list. EDD are only a requirement for players from jurisdictions listed in the EU Regulation of High Risk Third Country list pursuant to 17(2) of the AML Act.
The post Spillemyndigheden Calls Attention to FATF’s Updated Lists of High-risk Jurisdictions appeared first on European Gaming Industry News.
Africa
South Africa: Tribunal Grants Lottoland Interim Relief – Orders Google to Grant Lottoland Access to its Advertising Platform
The Competition Tribunal (“Tribunal”) has issued an interim order directing Google Ireland Ltd and Google South Africa (Pty) Ltd (collectively, “Google”) to permit Lottoland South Africa (Pty) Ltd (“Lottoland”) to access its advertising services known as “Google Ads”, for so long as Google permits any firm in South Africa to utilise Google’s Ads Services to advertise fixed-odds betting on the outcome of lotteries. The Tribunal’s order applies for a period of six months from its date, or the conclusion of a hearing into the prohibited practices alleged by Lottoland, whichever is the earlier.
This platform enables advertisers to display ads to users who utilise Google search, with Google Ireland acting as the service provider for Google Ads in South Africa.
The Tribunal’s order follows an interim relief application by Lottoland, a licensed bookmaker, which, inter alia, offers fixed-odds bets on the outcome of various lotteries around the world, including the South African national lottery, sporting events and other betting contingencies. Lottoland competes with other licensed bookmakers in South Africa such as Hollywood Bets, World Sports Betting, Betway, Betfred (which owns Lottostar) and Netbet (which trades as Sportingbet).
In summary, Lottoland alleged that Google terminated its access to Google Ads without justification while allowing access to its competitors, causing it financial harm and distorting competition in the market that Lottoland operates in, to the detriment of consumers.
Google contended that Lottoland’s offering of fixed-odds bets on the outcome of the national lottery in South Africa contravenes sections 57(1) and 57(2)(g) of the Lotteries Act. It submitted that in terms of its online advertising policies, which are designed to protect users, restrictions are placed on the promotion of certain gambling activities. Of particular relevance, the promotion of lotteries is limited to state-licensed entities and that this restriction is in place to ensure compliance with the provisions of the Lotteries Act.
Reasons for Decision
A non-confidential version of the Tribunal’s reasons will be published in due course once any confidentiality claims in relation to the reasons have been finalised with the parties involved. In deciding the matter, the Tribunal considered the following three factors holistically, balancing each factor against the other to determine what is reasonable and just:
• Evidence relating to the alleged prohibited practice;
• The need to prevent serious or irreparable damage to the applicant (Lottoland); and
• The balance of convenience.
The post South Africa: Tribunal Grants Lottoland Interim Relief – Orders Google to Grant Lottoland Access to its Advertising Platform appeared first on European Gaming Industry News.
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