UKGC reminds operators of responsibilities following government’s Russia sanctions
Operators advised to adhere to a “risk-based approach” when dealing with potentially sanctioned banks and individuals
Following the UK government sanctions on Russia including an asset freeze on all Russian banks, the UK Gambling Commission (UKGC) has reminded operators of their responsibilities when it comes to dealing with sanctioned consumers.
Following Russia’s invasion of Ukraine, the UK government has implemented a raft of sanctions against Russian business and operations.
A ”risk-based approach” has been advised by the governing body with relation to any third-party, business or customer relationships they conduct which are associated with Russia including individuals, banks or entities named by the government on the sanction list.
Money laundering and terrorist financing risk assessments, policies, procedures and controls for gambling operators should already include provisions for limiting the risk of interacting with sanctioned customers, as well as the chance of doing business with sanctioned jurisdictions.
The UKGC also reminded operators that they are required to submit a key event report notifying the UKGC should they breach the terms of the licence conditions and codes of practice pertaining to any sanctions list.
In addition, operators must also report themselves to the Office of Financial Sanctions Implementation (OFSI) as soon as they find that they have breached the sanctions.
If they fail to apply this “risk-based approach”, they could be in breach of the Sanctions and Anti-Money Laundering Act and other domestic and international laws, which the OFSI would enforce.
The UKGC concludes the statement by adding that a failure to adhere to a “risk-based approach” could result in a breach of the conditions of their operating and personal licence conditions, which could result in enforcement action against the business or individual.
The move from the UKGC follows a series of initiatives from the gambling industry, including relocation packages for Ukrainian employees and families, as well as charitable donations.
Several organisations have also partnered to launch the Gaming Industry for Ukraine initiative which aims to raise £250,000 to support Choose Love’s Ukraine Crisis Fundraiser which will provide vital aid to those impacted by the crisis.
A spokesperson for Gaming Industry for Ukraine explained: “Most organisations employ people from Ukraine, or have done business in the region, shared a drink with them and above all have made friends with them.
“The global gambling industry is a family and what has become clear over the past few days is the strength of responsibility it feels in providing support to the people of Ukraine, which is why we have started this campaign to allow us to work together to make it easier for that to happen.”