The prevention of money laundering and combating the financing of terrorism
3 - Internal and external reports
A casino operator must require that anyone working for the operator, to whom information or other matter comes in the course of business, as a result of which they know or suspect, or have reasonable grounds for knowing or suspecting, that a person is engaged in money laundering or terrorist financing makes an internal report to their nominated officer.
Whilst disclosure to another of the fact that a person may be engaged in money laundering is generally an offence66 , such disclosures to a nominated officer, constable or customs officer are specifically protected, where they are made as soon as is practicable and the information came to their attention in the course of their trade, profession, business or employment.67
We recommend that casino operators make employees aware that they have a legal defence to prosecution if they make an internal report to the nominated officer as soon as is reasonably practicable after the information or other matter comes to their attention. Whether or not this defence would be successful would be a matter for the court based on the exact circumstances of the case.
Any internal report should be considered by the nominated officer, in the light of all other relevant information available to the nominated officer, to determine whether or not the report gives rise to knowledge or suspicion, or reasonable grounds for knowledge or suspicion, that a person is engaged in money laundering or terrorist financing.
The nominated officer should:
- consider any information held about the customer’s personal circumstances that is available to the casino operator
- review transaction patterns and volumes through the account or other accounts held in the same name, the length of the business relationship and the identification records held.
The nominated officer must be fully conversant with the legal obligations to make external reports to the NCA. Many of the records required by the Regulations relate to work done, or decisions made, by the nominated officer, including records of why reports have not been made to the NCA.
66Section 333A of POCA.
67Section 337 of POCA.
Standing of the nominated officer
Last updated: 13 November 2020
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