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Compliance Updates

How Curacao new AML requirements differ from other flexible license jurisdictions

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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.

Compliance Updates

Ukrainian Security Service, NCEC and AUGO Shut Down 133 Illegal Online Casinos

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Ukraine’s Security Service, the State Service of Special Communications and Information Protection, the National Commission for the State Regulation of Electronic Communications, Radiofrequency Spectrum and the Provision of Postal Services (NCEC), and the Association of Ukrainian Gambling Operators (AUGO) have jointly blocked 133 illegal online casinos operating within Ukraine’s digital space.

According to AUGO’s press release on Tuesday, Derzhspetszviazok issued Directive No. 435/3236 on July 1, ordering the blocking of IP addresses and websites involved in illegal gambling. The directive was sent to internet providers and industry associations on July 3 and is mandatory for implementation within three working days—by July 8.

The association estimates that the joint operation disrupted a shadow business generating UAH 3 to 5 billion in illicit turnover every quarter.

Beyond blocking the sites with technical and software tools, the operation included broader organisational and technical efforts targeting the infrastructure that enabled these illegal platforms to function. Notably, unauthorised financial processing was halted, and associated P2P transactions were frozen.

“In chess terms – white has made the first move, and black is already losing pieces on the board… No, w’re not grandmasters yet. But this will be a decisive chess match, and we’re convinced the illegal players will eventually have no choice but to leave the game,” said AUGO President Oleksandr Kohut, as quoted in the press release.

He emphasised that illegal casinos – most of which now have ties to Russia – inflict direct harm on the Ukrainian state, legal businesses and its citizens. These sites, which are frequently cloned after being blocked, also pose a high risk of fraud and the leakage of players’ personal and financial data.

This marks the first time the Security Service, Derzhspetszviazok, and NCEC have actively partnered with AUGO on such an initiative. The association, which was launched three months ago, provided software, analytical and informational support for the operation to dismantle the illicit online gambling sector.

Kohut affirmed that AUGO remains committed to further collaboration with regulators – including the Ministry of Digital Transformation and the newly formed PlayCity agency – as well as with law enforcement to swiftly detect and shut down illegal casinos online. AUGO also plans to work with state regulators to inform media outlets of future blocking decisions as soon as they are made and communicated to telecom operators.

The post Ukrainian Security Service, NCEC and AUGO Shut Down 133 Illegal Online Casinos appeared first on European Gaming Industry News.

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AGRESE

Representatives from AGRESE and LOTESE Visits Lottopar

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On July 3rd and 4th, the Paraná State Lottery (Lottopar) received at its headquarters representatives from the Sergipe State Public Services Regulatory Agency (AGRESE) and the Sergipe State Lottery (LOTESE), on an institutional visit aimed at exchanging experiences and technical in-depth study on the regulation, operation and control model of state lottery activity.

During the two-day event, visitors learned in detail about the regulatory framework built by Lottopar, the systems adopted to ensure the traceability and security of operations, the criteria for accrediting operators and laboratories, and the responsible gaming and anti-money laundering policies implemented since the organization’s founding.

“We are delighted to welcome AGRESE and LOTESE. We believe that the development of state lotteries necessarily involves this type of technical cooperation, where successful experiences can be shared and adapted to the needs of each federative entity. The Lottopar model is constantly evolving, and it is a pleasure to be able to contribute to other states that, like Sergipe, demonstrate a commitment to serious, safe, and responsible regulation,” Lottopar CEO Daniel Romanowski said.

The exchange of information between states is essential for consolidating a safer, more efficient national lottery environment aligned with international best practices. The visit also reinforces the importance of joint action between regulatory agencies and state lotteries in formulating effective public policies.

AGRESE CEO Mr. Luiz Hamilton Santana de Oliveira said: “The institution is very honored and pleased to have hosted this technical visit, as it was a very productive two days, where we were able to further enhance our knowledge. We will implement what we learned and saw here into our regulations back in Sergipe.”

Adriana França Coserva Hide, CEO of LOTESE, said: “On behalf of Loterias de Sergipe, I would like to express our deep gratitude to the Lottopar team for the warm welcome and, most importantly, congratulate them on the exemplary work they have been doing. We were impressed by the level of excellence, professionalism, and commitment to social well-being that permeates Lottopar’s entire structure and operations. This exchange of experiences was extremely enriching and reinforces our conviction that cooperation between state public lotteries is a fundamental path to strengthening the sector in Brazil. We leave here inspired and even more committed to the mission that unites us.”

The agenda concluded with technical visits to Lottopar’s strategic departments and the headquarters of accredited partners, focusing on practical observation of operations. New joint initiatives are expected to be established soon, solidifying a virtuous cycle of cooperation between Brazilian public lotteries.

The post Representatives from AGRESE and LOTESE Visits Lottopar appeared first on Gaming and Gambling Industry in the Americas.

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Compliance Updates

New ESRI Research Commissioned by the GRAI Suggests Gambling Offers Lure People to Bet More, Particularly People at Risk of Problem Gambling

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A new study commissioned by the Gambling Regulatory Authority of Ireland (GRAI) /Department of Justice, Home Affairs and Migration and undertaken by the Economic and Social Research Institute (ESRI) shows that betting and gambling companies offering special offers or inducements encourages people to gamble more than they would otherwise, even when the odds offered are “bad”.

Special offers or inducements, such as free bets and moneyback guarantees are regularly used by gambling companies in their marketing campaigns. The study found that vulnerable people such as those at higher risk of becoming problem gamblers, were most at risk of gambling more, and losing more, as a result of being offered inducements.

In a controlled experiment run with a sample of 622 men under 40, participants, were given money to place up to six realistic bets on the Euro 2024 football tournament.

Half of the participants were randomly selected and shown offers of free bets and moneyback guarantees on some bets. which caused these participants to spend over 10% more than those who were not given inducements. The inducements also reduced the number of participants opting not to bet by nearly half. Even inducement bets that were designed as “bad”, showing odds far below market rates, were undertaken by participants in this group, who were three times more likely to spend money on “bad” bets.

These findings illustrate the harm inducements cause, particularly to those who are susceptible to gambling harm.

Under the Gambling Regulation Act 2024, the legislation which underpins the work of the GRAI, inducements or encouragement to gamble further will soon be an offence and licensed operators will no longer be allowed to offer free bets which are targeted at individuals and specific groups. Multiple European countries have also begun to regulate inducements.

Participants were surveyed after the study on their knowledge and understanding of inducements. Even amongst regular betters, most did not know that there were restrictions on free bets and that they would not receive their stake back if they won a free bet.

Paul Quinn, Chairperson of the GRAI, said: “I very much welcome this research from the ESRI examining the impact of inducements to gamble on gambling behaviours. Having a clear evidence base is critically important to the GRAI as we commence our work in regulating the gambling industry. This latest research will help inform that work and in educating the public on this matter.

“This study clearly indicates the damaging effect of certain practices around inducements. It underlines the importance of the provisions of the Gambling Regulation Act in limiting a person’s exposure to inducements to gamble. We look forward to working with Minister O’Callaghan in addressing the issue as we implement the new regulations.”

Anne Marie Caulfield, CEO of the GRAI, said: “The ESRI’s findings confirm that not only is the general public not aware of the dangers associated with inducements to bet, but also that the impact of these inducements go beyond simple marketing by betting companies.

“It is our responsibility to ensure that gambling operators do not encourage excessive or compulsive gambling behaviour, and that we protect vulnerable people in our society, such as children and young people and those more likely to experience gambling harm.

“The Gambling Regulation Act 2024 sets out obligations for licensees in the way in which inducements can be offered, including a ban on targeted inducements, and the findings of this study affirm these measures.”

Diarmaid Ó Ceallaigh, Postdoctoral Research Fellow, Behavioural Research Unit, ESRI, said: “Our findings imply that gambling offers aren’t merely marketing tools, but pose a real risk of financial harm, particularly among vulnerable groups.

“The results support the case for stricter regulation of gambling offers in Ireland, following steps already taken in other European countries, such as banning sign-up bonuses, restricting offers to at-risk individuals, and capping their value.”

The post New ESRI Research Commissioned by the GRAI Suggests Gambling Offers Lure People to Bet More, Particularly People at Risk of Problem Gambling appeared first on European Gaming Industry News.

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