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The prevention of money laundering and combating the financing of terrorism

Internal controls

4.14 Where appropriate, with regard to the size and nature of the business, a casino operator must appoint a member of its board of directors (or equivalent management body if there is no board) or of its senior management as the officer responsible for the operator's compliance with the Regulations (regulation 21(1)(a)).

4.15 In determining what is appropriate or proportionate with regard to the size and nature of their business, casino operators must take into account their risk assessment and should take into account any guidance issued by the Commission or appropriate body, and approved by HM Treasury (regulation 21(10)). An appropriate body is a body which regulates or is representative of any trade, profession, business or employment carried on by a casino operator (regulation 3(1). (and includes trades bodies such as the National Casino Forum and the Remote Gambling Association).

4.16 Where the casino operator appoints a board member as the officer responsible for the operator's compliance with the Regulations, it is important that this member and the director or senior manager who is allocated the overall responsibility for the establishmentand maintenance of the operator's AML and CTF systems (where they are not the same person) are clear on their responsibilities.

4.17 The casino operator must, within 14 days of the appointment, inform the Commission of the identity of the individual appointed as the officer responsible for the operator's compliance with the Regulations, and any subsequent appointment to that position (regulation 21(4)).

4.18 The internal controls envisaged in paragraph 4.10 must, where appropriate with regard tothe size and nature of the casino operator's business, also provide for:

  • carrying out screening of relevant employees appointed by the operator, both before the appointment is made and during the course of the appointment,  relation to the operator's business
  • the establishment of 
  • where:
    • screening means an assessment of the skills, knowledge and expertise ofthe individual to carry out their functions effectively, and the conduct and integrity of the individual
    • a relevant employee is an employee whose work is:
      • relevant to the operator's compliance with any requirement in the Regulations
      • otherwise capable of contributing to the identification or mitigation of the risks of money laundering and terrorist financing to which the operator is subject, or the prevention or detection of money laundering and terrorist financing in relation to the operator's business
  • an independent audit function with the responsibility to:
    • examine and evaluate the adequacy and effectiveness of the policies, procedures and controls adopted by the operator to comply with the Regulations
    • make recommendations in relation to those policies, procedures and controls
    • monitor the operator's compliance with those recommendations (regulation 21). 

4.19 In determining what is appropriate or proportionate with regard to the size and nature of their business, casino operators must take into account their risk assessment and should take into account any guidance issued by the Commission or appropriate body, and approved by HM Treasury (regulation 21(10)).  An appropriate body is a body which regulates or isrepresentative of any trade, profession, business or employment carried on by a casino operator (regulation 3(1)) (and includes trades bodies such as the National Casino Forum and the Remote Gambling Association).

4.20 Casino operators must establish and maintain systems that enable them to respond fully and rapidly to enquiries from financial investigators accredited under section 3 of POCA, persons acting on behalf of the Scottish Ministers in their capacity as an enforcement authority under POCA, or constables or equivalent officers of any law enforcement authority, in relation to:

  • whether it maintains, or has maintained during the previous five years, a businessrelationship with any person, and
  • the nature of the relationship (regulation 21). 

Next chapter: Nominated officer