EU's new anti-money laundering package finalized

The European Union’s new anti-money laundering (AML) package has been finalized following its approval by the European Council, which is the final step in the EU legislative process. The new rules will benefit online gambling operators by standardizing AML rules and reporting requirements. Obliged entities will have three years to comply with the new rules.

The finalization of the new AML has been welcomed by the European Gaming and Betting Association (EGBA), which is convinced that 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 (Germany), 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. It will also provide for 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; and a new Anti-Money Laundering Regulation (AMLR), which encompasses requirements for conducting due diligence, transparency of beneficial owners and much more, directing practitioners though the whole AML process for obliged entities. The regulation sets a limit of €2000 for conducting due diligence on players for online gambling operators.

As reported by EGBA, a key feature of the new package will be the creation of a harmonized reporting format for Suspicious Transaction Reports overseen by AMLA. Furthermore, in order 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 AML rules in the EU.