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

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
15 May 2023 - Changes

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Contents

Proposal 7: Changes to licence condition 15.2.1 (reporting key events – relevant persons and positions)

Proposal

We proposed to remove three key events in the relevant persons and positions section (15.2.1 (5), (7) and (9)) as we have determined that we no longer require this information to be reported to us. We also propose to make minor adjustments to 15.2.1 (8). In addition to being notified of persons who are appointed to or cease to occupy a key position, we also want to be notified when they leave one position to take up another. We propose to amend our definition of a key position (15.2.1 (8c)) for the purpose of anti-money laundering and counter terrorist financing compliance and reporting.

Consultation question

Question 1.7. Do you agree with the proposed changes to the licence condition?

Respondents' views

Whilst there was strong support for these proposals, several clarifications and modifications were suggested. These included as follows.

Whether the reference to, 'a position where the holder of which is responsible for the licensee’s anti-money laundering and counter terrorist financing compliance and for the reporting of known or suspected money laundering or terrorist financing activity', refers to a single person with overall responsibility for anti-money laundering and counter terrorist financing compliance (for example a licensee’s Money Laundering Reporting Officer), or any person with responsibility for implementing such matters.

That we amend the wording of '(including leaving one position to take up another)' to clarify this means leaving one key position if this is the intent of our change.

That the wording 'anti-money laundering and counter terrorist financing compliance' be changed to 'anti-money laundering and/or counter terrorist financing compliance' to capture situations where a different individual may be responsible for each aspect.

That persons in key positions should include a licensee’s Head of VIP Accounts. whether the eServices’ portal would be updated to reflect the changes to reporting requirements.

One respondent sought clarification as to why we no longer needed the deleted key events to be reported to us. Another queried whether the removal of Key Event 15.2.1 (5) would weaken our ability to monitor a licensee's source of funding.

Our position

After a review, we have determined that the regulatory value of these key events is limited and that to continue to require them to be reported to us would be unnecessarily burdensome for licensees.

We are satisfied that the requirements in key events (15.2.1 (4) and (6)) along with the retained financial events (15.2.1 (10-17)) and licence condition 15.2.2, are sufficiently strong to enable us to understand when there may be issues with a licensee’s source of funding.

We will amend the wording under licence condition 15.2.1 (8c) to specify that licensees must report to us details of persons leaving one key position to take up another.

With respect to our proposal to expand the definition of a key position to include persons responsible for counter terrorist financing, we will amend the wording to 'a position where the holder of which has overall responsibility for the licensee’s anti-money laundering and/or counter terrorist financing compliance and/or for the reporting of known or suspected money laundering or terrorist financing activity'. This clarifies that we only need to be informed about persons with 'overall responsibility' for these functions and recognises that a licensee may appoint different people to be responsible for anti-money laundering and/or counter terrorist financing, and/or the reporting of known or suspected money laundering or terrorist financing activity. Further guidance in relation to the status and standing of these positions is provided in the Gambling Commission’s guidance and advice documents on anti-money laundering (opens in new tab).

We have considered the suggestion that our definition of persons in key positions should include a licensee’s Head of VIP Accounts. This addition is outside the scope of the proposed changes in this consultation. In June 2020 we launched a consultation on High Value Customers through which this issue is explored further.

On the matter of the eServices’ portal, we can confirm that we are planning to update the system to align with all the key events changes (and for those updates to be rolled-out in October 2020).

We have removed the wording 'or ensure the Commission is provided with' to make the language consistent with the removal of this phrase from elsewhere in the Licence Conditions and Codes of Practice (LCCP). These changes will reinforce the principle that responsibility for meeting the licence condition rests with licensees, not third parties.

The following changes will take effect from 31 October 2020.

Final wording of amended licence condition 15.2.1 (reporting key events - relevant persons and positions)

Relevant persons and positions

4 [No change]

5 [Removed and renumbered]

6 [No change]

7 [Removed and renumbered]

8 The appointment of a person to, or a person ceasing to occupy, a ‘key position’ (including leaving one position to take up another). A ‘key position’ in relation to a licensee is:

  • a. in the case of a small-scale operator, a ‘qualifying position’ as defined in the Gambling Act 2005 (Definition of Small-scale Operator) Regulations 2006.
  • b. in the case of an operator which is not a small-scale operator, a ‘specified management office’ as set out in (current) LCCP licence condition 1.2.
  • c. a position where the holder of which has overall responsibility for the licensee’s anti-money laundering and/or terrorist financing compliance, and/or for the reporting of known or suspected money laundering or terrorist financing activity.
  • d. any other position for the time being designated by the Commission as a ‘key position’. (Notification is required whether or not the person concerned is required to hold a personal management licence and whether or not the event notified requires the licensee to apply for a variation to amend a detail of their licence.).

9 [Removed and renumbered]

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Proposal 6: Changes to licence condition 15.2.1 (reporting key events – operator status) Next section
Proposal 8: Changes to licence condition 15.2.1 (reporting key events – financial events)
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