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Consultation response

Changes to information requirements in the LCCP, regulatory returns, official statistics, and related matters

Parts I and II of the consultation response that sets out our position in relation to the information the Gambling Commission requires licensees to provide us.

Published
30 July 2020

Last updated
27 March 2023 - Changes

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Contents

Proposal 12: Additional licence condition 15.2.3 (Other reportable events)

Proposal

We proposed to introduce a new licence condition (licence condition 15.2.3) relating to the Money Laundering, Terrorist Financing and Transfer of Funds (Information on Player) Regulations 2017 (opens in new tab) (the Regulations). This licence condition will require licensees to report to us any actual or potential breaches by the licensee of provisions of the Regulations, or any United Kingdom (UK) Statutory Instrument by which those regulations are amended or superseded. Also, we require to be notified of the identity of the persons responsible for the licensee’s compliance with the Regulations (in accordance with regulation 21(1)(a)), and the identity of the licensee’s nominated officer (in accordance with regulation 21(3)). This new licence condition applies only to non-remote and remote casino operating licences.

Consultation question

Question 1.12. Do you agree with the proposals for the new licence condition?

Respondents' views

Some respondents requested further guidance on the types of breaches that should be reported to us, if we wanted reporting to be consistent, non-subjective and not overly burdensome to licensees. For example, one respondent asked whether we should be notified of any customer accounts suspended due to a lack of satisfactory source-of-funds documentation. One respondent suggested that our requirement to report 'potential breaches' was significantly beyond that prescribed in the Regulations. Other queries were as follows.

Whether the new licence condition was necessary given the existing key event requirement to report any criminal investigations by a law enforcement agency (licence condition 15.2.1 (19b)). Similarly, another respondent commented that the new licence condition appeared to duplicate a similar requirement for all operating licence holders to be added to licence condition 15.2.2 (1d).

If we plan to publish further information on the 'form or manner' of these new notification requirements and how they are to be reported to us. Clarification as to the reason for not making the role of 'nominated officers' responsible for reporting breaches a 'key position' and whether it would be acceptable for a single staff member to hold both positions.

Our position

Regulation 46(2)(e) of the Money Laundering, Terrorist Financing and Transfer of Funds (Information on Payer) Regulations 2017 (the Regulations) requires that we, as a supervisory authority under the Regulations, must take effective measures to encourage casino licensees to report breaches of the provisions of the Regulations to us. To encourage such self-reporting by casino licensees, we have proposed the introduction of this licence condition. It will require casino licensees to report to us any actual or potential breaches by the licensee of provisions of the Regulations.

This includes breaches of the customer due diligence, record keeping and training requirements, and of the requirements for risk assessments and policies, procedures, and controls.

Licensees are not required to notify us through this licence condition of any customer accounts suspended due to a lack of satisfactory source-of-funds documentation. We only require notification of breaches by the licensee of the provisions of the Regulations.

The licence condition is not rendered unnecessary by, or a duplication of, licence conditions 15.2.1 (19b) and 15.2.2 (1d), as they address different requirements. Licence condition 15.2.2 (1d), for example, concerns a notification requirement for breaches of the Proceeds of Crime Act (POCA) or the Terrorism Act, whereas this proposed licence condition addresses a requirement to report breaches of the Regulations by casino licensees. Regulation 21(4) of the Regulations requires casino licensees to inform us of the identity of the person responsible for the licensee’s compliance with the Regulations (in accordance with regulation 21(1)(a)). There is a similar requirement in relation to the appointment of a nominated officer (in accordance with regulation 21(3)). This licence condition provides the mechanism through which casino licensees can fulfil this obligation formally.

Licensees must, within 14 days of the appointment, notify us of the identity of the persons so appointed using the eServices digital service on our website. The notification should include the full details of the individuals, the date of their appointment and details of their position within the business, senior management, or role on the board. Licensees are also required to notify us of any departures or removals of individuals from the positions mentioned previously. So, licensees must, within 14 days, notify us of the identity of the persons who have departed or been removed using the eServices digital service. The notification should include the full details of the individuals, the date of their departure or removal, and the reason for their departure or removal.

We intend to consult on the status of the nominated officer role later in 2020. Guidance in relation to the standing of the nominated officer is already provided in the Gambling Commission’s guidance on The prevention of money laundering and combating the financing of terrorism (opens in new tab) and advice on Duties and responsibilities under the Proceeds of Crime Act 2002 (opens in new tab). This new licence condition applies only to non-remote and remote casino operating licences.

The following changes will take effect from 31 October 2020.

Final wording of new licence condition 15.2.3 (other reportable events)

Licence condition 15.2.3
Other reportable events – money laundering, terrorist financing, etc
All non-remote and remote casino operating licences

1 Licensees must notify the Commission in such form or manner as the Commission may from time to time specify, as soon as reasonably practicable of any actual or potential breaches by the licensee of the provisions of the Money Laundering, Terrorist Financing and Transfer of Funds (Information on Payer) Regulations 2017, or any UK Statutory Instrument by which those regulations are amended or superseded.

2 Licensees must, within 14 days of the appointment, notify the Commission of the identity of the individual appointed as:

  • a. the officer responsible for the licensee’s compliance with the Money Laundering, Terrorist Financing and Transfer of Funds (Information on Payer) Regulations 2017 (regulation 21(1)(a)),
  • b. the nominated officer (regulation 21(3)), and any subsequent appointment to either of those positions.

3 Licensees must, within 14 days of the departure or removal of any individual appointed to the positions mentioned in 2 above, notify the Commission of such departure or removal.

Other reportable events are to be reported to us online via the ‘eServices’ digital service on our website.

Previous section
Proposal 11: Changes to licence condition 15.2.2 (other reportable events) Next section
Proposal 13: Changes to licence condition 15.3.1 (general and regulatory returns)
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