The European Commission is to propose the extension of money-laundering controls to gambling companies next week, as part of a raft of new measures aimed at strengthening EU defences against financial crime.
Commission plans for updating the Third Anti-Money Laundering Directive (AMLD) and the Fund Transfers Regulation, which date back to 2005 and 2006 respectively, are set to be presented by internal market commissioner Michel Barnier on Tuesday 5 February.
The Commission published a report on the existing Anti-Money Laundering Directive in April of last year, following the adoption of revised international standards by the Financial Action Task Force (FATF) aimed at strengthening the safeguards of the financial system against money laundering and terrorist financing.
The gambling sector was the first industry mentioned by the Commssion in last April’s report when it proposed [b]roadening the scope [of the AMLD] beyond the existing obliged entities”. The third AMLD only specifically applies to casinos, with “online casinos” being caught in its net by dint of the Directive applying to activities “performed on the internet”.
The EC also proposed in its April report that the new Anti-Money Laundering Directive include “a broader definition of gambling”.
The gambling industry was the second highest contributor of comments during last year’s consultation on the EC’s proposals in its adopted report , behind only the financial sector. Respondents included operators such as Betfair, bwin.party/CQR, Lottomatica and RAY, lobby groups EGBA, European Lotteries, the RGA and the Association of British Bookmakers, and regulators the Gibraltar Gambling Commissioner and the UK Gambling Commission.
Betfair argued in its submission that it was “imperative that internet business is recognised in its own right and not as part of land based business.”
According to recent press reports, the Italian Mafia is currently a major beneficiary of the confused laws for online gambling in the EU’s largest economy of Germany. Italy’s National Anti-Mafia Directorate also recently published a report detailing how organized crime continues to infiltrate legal gaming in Italy, with “a strong operation” recorded in online poker.
Article written by Stephen Carter
