EGBA voices support for EU-wide AML proposals

The European Gaming and Betting Association (EGBA) has voiced its approval for proposed changes to the European Union’s anti-money laundering rules which could see a new EU AML authority established.

The new proposals would establish a single integrated system of AML/CFT supervision across the EU, based on common supervisory methods and convergence of high supervisory standards.

It would enable the direct supervision of some of the riskiest financial institutions that operate in many member states or require immediate action to address imminent risks, while also allowing supervision of regulatory entities in the financial sector and beyond.

Legislation would also support cooperation among national Financial Intelligence Units and facilitate coordination and joint analyses between them, to better detect illicit financial flows of a cross-border nature.

Responding to proposals made to revise the current EU AML directive, which aims to prevent the financial system being used for the purposes of money laundering or terrorist financing, the EGBA cited the benefits of harmonising standards across the EU.

The changes include strengthened rules on beneficial ownership and customer due diligence procedures which could potentially impact not only the financial services sector, but the online gambling industry as well.

In addition, the proposals contain amended rules on national supervisory entities and the role of Financial Intelligence Units in member states, as well as an update on 2015 regulations regarding the transfer of cryptocurrency-based assets.

A single unified rulebook for AML transactions is also included within the proposals.

These latest proposals were put forward after criticism from some member states that other EU members have not sufficiently implemented and enforced the EU’s current AML framework.

Proposals will now go through the EU legislative process and will be sent to the European Parliament and Council for discussion and approval, which might take as long as 18 months.

Once approved, the regulations will immediately enter into force in all EU member states and the directive will need to be transposed into national regulation by EU member states.

EGBA director Ekaterina Hartmann said the trade body welcomed efforts to improve the EU’s AML framework.

“EGBA members already apply the highest regulatory standards in AML compliance and are fully committed to tackling money laundering in the online gambling sector,” Hartmann said.

“To support this, we are working closely with our members to develop EU-wide, sector-specific guidelines to help Europe’s online gambling companies comply with the increasingly complex AML rules in the EU,” she added.

The full guidelines will be published towards the end of 2021.