The European Union 4th Anti-Money Laundering Directive has been published in the European Journal.
The scope of the 4th Directive is wider than its predecessor and covers all gambling services. The 3rd Directive, implemented in the UK as the Money Laundering Regulations 2007, only applies to casinos. The 4th Directive will, however, allow Member States to exempt sectors on the basis of proven low risk posed by the nature and scale of their services. HM Treasury is responsible for making any such determination on the basis of ‘appropriate risk assessment’.
The Directive was formally adopted on 5 June triggering a two year process during which member states will incorporate the requirements into domestic law. HM Treasury lead for the UK and anticipate laying a new set of Money Laundering Regulations in the autumn of 2016 with the aim that these come into force in June 2017.
The Treasury intend to consult on any proposals in this area as part of the wider work to implement the Directive and all stakeholders will have the opportunity to contribute. The Commission expects to provide advice on the nature and level of money laundering risk in line with our statutory role to advise the Government on gambling and its regulation. Any determination of risk is likely to include not only the vulnerability to money laundering but also the presence and effectiveness of controls to mitigate it.
In addition to any consideration concerning proven low risk, the two year incorporation period provides opportunity for the industry to anticipate the requirements of the MLR. Operators will need to consider the provisions within their strategic and operational planning, as they develop appropriate capability, policy and procedures.
Notes to editors
- The Gambling Commission (the Commission) regulates gambling in the public interest alongside its co-regulators local licensing authorities. It does so by keeping crime out of gambling, by ensuring that gambling is conducted fairly and openly, and by protecting children and vulnerable people from being harmed or exploited by gambling. Subject to these overriding public protection objectives, as regulator of the National Lottery the Commission monitors and challenges Camelot to raise the maximum amount for good causes. The Commission also provides independent advice to government on gambling in Britain.
- The Commission and local licensing authorities are responsible for licensing and regulating all gambling in Great Britain other than spread betting, which is the responsibility of the Financial Conduct Authority (FCA).
- See the Terms & Conditions section of our website for information on legal advice.
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Posted on 15 June 2015