The prevention of money laundering and combating the financing of terrorism
4.21 The Regulations require that all relevant employees of casinos must be trained on the prescribed AML and CTF topics. (Regulation 24). Casino operators must ensure that their employees understand the Regulations, the Terrorism Act and POCA, and data protection, and apply the operator’s policies, procedures and controls, including the requirements for CDD, record keeping and SARs.
4.22 One of the most important controls for the prevention and detection of money laundering is to have employees who are alert to the risks of money laundering and terrorist financing, and who are well trained in the identification of unusual activities or transactions which appear to be suspicious, as well as in the accurate verification of customers’ identities. The effective application of even the best designed control systems can be quickly compromised if the employees applying the systems are not adequately trained. The effectiveness of the training will therefore be important to the success of the casino operator’s AML/CTF strategy.
4.23 Casino operators should devise and implement a clear and well-articulated policy and procedure for ensuring that relevant employees are aware of their legal obligations in respect of the prevention of money laundering and terrorist financing, and for providing them with regular training in the identification and reporting of anything that gives grounds for suspicion of money laundering or terrorist financing. Casino operators should also monitor the effectiveness of such training, to ensure that all employees are trained in an appropriate and timely manner, and that the training is fit for purpose.
4.24 Under POCA and the Terrorism Act, individual employees face criminal penalties if they are involved in money laundering or terrorist financing. If they do not make an internal report to their nominated officer when necessary they may also face criminal sanctions. It is important, therefore, that employees are made aware of their legal obligations, and are given training in how to discharge them.
4.25 The Regulations require casino operators to take appropriate measures so that their relevant employees are:
made aware of the law relating to the money laundering and terrorist financing, and to the requirements of data protection, which are relevant to the implementation of the Regulations.
regularly given training in how to recognise and deal with transactions and other activities or situations which may be related to money laundering or terrorist financing. (Regulation 24(1))
4.26 Casino operators must maintain a record in writing of the appropriate training measures they have taken and, in particular, of the training given to their relevant employees. (Regulation 24(1)(b)
4.27 "Relevant employees" - are employees whose work is:
This includes the holders of personal management licences and personal functional licences issued by the Commission, as well as employees responsible for completing CDD measures.
4.28 In deciding what training measures are appropriate, a casino operator:
must take account of the nature of its business, its size, and the nature and extent of the money laundering and terrorist financing risks to which its business is subject
should take account of the guidance issued by the Commission or by any body which represents the casino industry in Britain, such as the National Casino Forum or the Remote Gaming Association. (Regulation 24(3))
4.29 The content of any training, the regularity of training and the assessment of competence following training are matters for each casino operator to assess and decide in light of the money laundering and terrorist financing risks they identify, provided the requirements of regulation 24 are met. The Commission will expect such issues to be covered in each operator’s policies and procedures. These should make provision for the attainment of an appropriate competence level by the relevant employees identified in paragraph 4.27, prior to them undertaking the duties for which they will be responsible. This may, for example, be achieved by the attainment of an appropriate pass rate in a competency test following training.
4.30 Casino operators should also ensure that relevant employees are aware of and understand:
their responsibilities under the operator’s policies and procedures for the prevention of money laundering and terrorist financing
the money laundering and terrorist financing risks faced by an operator and each of its casino premises
the operator's procedures for managing those risks
the identity, role and responsibilities of the nominated officer, and what should be done in their absence
the potential effect of a breach upon the operator and upon its employees
how the casino will undertake CDD
how the casino will track customers when CDD is not undertaken on entry to the casino
how PEPs, family members of PEPs and known close associates of PEPs will be identified, and how to distinguish PEPs who present a relatively higher risk from those who present a relatively lower risk.
4.31 There is no single solution when determining how to deliver training and a mix of training methods may, therefore, be appropriate. Online training systems can provide a solution for many employees, but this approach may not be suitable for all employees. Classroom training can be more effective in these circumstances.
4.32 Procedure manuals, whether paper or electronic, are useful in raising employee awareness and can supplement more dedicated forms of training, but their main purpose is generally to provide ongoing reference rather than being written as training material.
4.33 Ongoing training must be given to all relevant employees at appropriate intervals. Records should be maintained to monitor who has been trained, when they received the training, the nature of the training and the effectiveness of the training.
4.34 The nominated officer should be heavily involved in devising and managing the delivery of such training, taking particular care to ensure that systems are in place to cover all part-time or casual employees.
4.35 The NCA publishes a range of material at www.nationalcrimeagency.gov.uk, such as threat assessments and risk profiles, of which casino operators may wish to make their employees aware. The information available on this website could usefully be incorporated into operators’ training materials. The Home Office publishes guidance that may help staff identify fraudulent identity documents. (Guidance on examining identity documents)
4.36 It is also recommended that casino operators consult the Commission’s AML webpage, which has useful information (including statements regarding AML controls) and links to other AML resources (www.gamblingcommission.gov.uk/for-gambling-businesses/Compliance/General-compliance/AML/Anti-money-laundering.aspx)
Next chapter: Nominated Officer