Compliance Updates

DGA: Three Orders and One Reprimand Issued to Mr. Green Limited for Breach of the Anti-Money Laundering Act

Published

2 weeks ago

April 16, 2024

Reading Time: 3 minutes

On April 10th, 2024, the Danish Gambling Authority has issued three orders to Mr. Green Limited for breaching the Anti-Money Laundering Act, on risk assessment, on procedures for internal controls and for failing to ensure that controls are carried out.

On April 10th, 2024, the Danish Gambling Authority has also given Mr. Green Limited a reprimand for breaching the rules on notification in the Anti-Money Laundering Act.

The reactions have been given in connection with the Danish Gambling Authority’s inspection of Mr. Green Limited’s materials that Mr. Green Limited has provided for compliance with the Anti-Money Laundering Act.

Order for insufficient risk assessment

Order (a) is issued because Mr. Green’s risk assessment is insufficient, as no separate risk assessment has been made of the individual identified risks associated with Mr. Green’s business model, including payment solutions, and the risk factors associated with it. It follows from section 7(1) of the Anti-Money Laundering Act that undertakings subject to the Act must identify and assess the risk that the undertaking may be misused for money laundering or terrorist financing. The Danish Gambling Authority’s assesses that the risk assessment must include a separate assessment of the risk of the individual payment solutions and delivery channels, as well as a separate risk assessment of the risk factors associated with these. Thus, Mr. Green did not comply with the risk assessment obligation.

Order for insufficient and lack of business procedures

Order (b) is issued because Mr. Green Limited does not have adequate procedures for internal controls, as these do not describe the interval at which controls should be performed. The order has also been given because Mr. Green Limited does not have written procedures on how to monitor that controls are carried out. It follows from section 8(1) of the Anti-Money Laundering Act that undertakings subject to the Act must have adequate written business procedures, which must include internal control. The business procedures should describe how the listed areas are handled in practice. The requirement for internal control also means that there must be controls of whether the controls are being carried out – in other words, that the controls are being checked. Mr. Green Limited has not sufficiently complied with the commitments on business procedures for controls.

Order for lack of documentation of controls

Order (c) is issued because Mr. Green Limited has not documented that controls have been carried out to verify that the internal controls have been performed. It follows from section 8(1) of the Anti-Money Laundering Act that undertakings subject to the Act must document the controls that have been carried out. Thus, Mr. Green Limited has not complied with the obligations to perform controls to ensure that the internal controls are performed.

Reprimand for not making an immediate notification

Reprimand (a) is given because Mr. Green Limited has in two cases not complied with the requirement for immediate notification to the Money Laundering Secretariat. According to section 26(1) of the Anti-Money Laundering Act, an undertaking must immediately notify the Money Laundering Secretariat if the undertaking knows, suspects or has reasonable grounds to suspect that a transaction, funds or activity is or has been related to money laundering or terrorist financing. Mr. Green has not complied with the notification obligations, as there has been no immediate notification.

Duty to act

The orders entail an obligation to act on the part of Mr. Green Limited. Mr. Green Limited must submit a revised risk assessment within June 10th, 2024.

Mr. Green must also within June 10th, 2024, submit a revised business procedure for internal controls and submit prepared business procedures for how the implementation of controls is monitored.

Mr. Green Limited must also submit documentation within October 10th, 2024, that it has been controlled that the controls have been carried out.

The reprimand does not entail any obligation to act on the part of Mr. Green Limited as the breach no longer exists.

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Uzbekistan Legalises Online Betting and Lotteries

Published

4 hours ago

April 30, 2024

Niji Narayan

Reading Time: 2 minutes

President of Uzbekistan Shavkat Mirziyoyev has signed a decree on April 19 titled “On Measures to Improve the Regulation of the Organization and Conduct of Lotteries and Risk-Based Games in the Republic of Uzbekistan”. The document abolishes the ban starting from January 1, 2025, and introduces a legal framework for the organisation of risk-based games online and betting activities.

The issue of legalising betting activities has been a long-standing topic in Uzbekistan. In December 2019, the president signed a decree to legalise bookmakers, but this decision was revised in April 2022. In April 2023, the head of state instructed the development of a regulatory framework for betting activities.

The National Agency for Advanced Projects (NAAP), the authorised state body for regulating and licensing activities in this sector, provided insights on the necessity of introducing state regulation in the gambling sector in Uzbekistan. The agency emphasised the need to prevent illegal gambling businesses, protect players’ rights and generate additional income for the state budget.

The president’s decree aims to introduce advanced foreign experience and modern technologies in regulating the organisation of risk-based games and lotteries to increase investment attractiveness, tourist potential and attract additional funds to the country.

The measures outlined in the decree include the creation of legal foundations for the legalisation of activities related to risk-based games online, betting activities, and lotteries, implementation of mechanisms to protect citizens’ rights and interests, prevention of gambling addiction and the generation of additional state budget revenue.

Starting from January 1, 2025, a taxation system will be introduced for license holders, where organisers of online games, betting activities and lotteries will pay a turnover tax. This system aims to prevent the concealment of taxable revenue and is expected to generate additional tax revenues for the state budget.

Overall, the implementation of the decree is intended to establish a reliable foundation for the legal regulation of activities related to organising risk-based games online, betting activities and lotteries in Uzbekistan, protect citizens’ interests, combat gambling addiction and provide additional sources of income for the state budget.

Compliance Updates

IAGR & IMGL Open Ticket Sales for 2024 Conference in Rome

Published

1 day ago

April 29, 2024

Alan Campbell

Reading Time: < 1 minute

The International Association of Gaming Regulators (IAGR) has opened registrations for its annual conference, taking place in Rome, Italy, from October 21 to 24.

With the theme Navigating the Future of Gaming Regulation in a Transforming World, this year’s event is a partnership with the International Masters of Gaming Law (IMGL).

“IAGR and IMGL’s Rome conference is a four-day event that brings together regulators, industry thought leaders and experts to share ideas and shape the future of gaming regulation across the world,” the President for the IAGR, Ben Haden, said.

The conference follows last year’s event in Gaborone, Botswana, which brought together the largest number of attendees in IAGR’s history.

“This year, participants can look forward to diving into themes that are at the forefront of the gaming regulation landscape including advancements in technology, the evolving regulatory challenges and strategies for future-proofing the global gaming industry,” Haden said. “In an era where technology is rewriting the rules of our industry, the question isn’t whether to adapt, but how swiftly we can. IAGR 2024 is about coming together as a global community to not only keep pace with change but to drive it.”

Confirmed speakers will be announced from May.

Conference highlights:

Expert-led sessions and panel discussions on the latest in gaming regulation
Joint conference sessions and events with IMGL, providing further networking and knowledge-sharing opportunities
Networking events set in the heart of Rome including an opening reception and gala dinner featuring the International Regulatory Awards ceremony

Early-bird pricing is available until July 31 with super-early bird prices available until May 31. Head to the IAGR website for more details and ticket sales.

Asia

Indonesia Establishes Task Force to Combat Online Gambling

Published

1 day ago

April 29, 2024

Niji Narayan

Reading Time: < 1 minute

Indonesia’s Ministry of Communications and Information Technology (Kominfo) has revealed plans to establish a task force to combat online gambling.

In a statement, Kominfo said the task force would comprise representatives of multiple government agencies including the Financial Services Authority (OJK), Financial Transaction Reports and Analysis Centre (PPATK) and the police.

It will also work with Interpol to combat cross-border cases given the government’s lack of past success in blocking foreign operators.

“Kominfo will oversee the digital space, OJK will manage accounts and PPATK will handle fund flows, and the police will carry out arrest and investigation duties,” said Usman Kansong, the Ministry’s Information and Public Communications Director.

Minister Budi Arie said: “The Ministry has also issued a warning to all social media platforms, cellular operators and internet service providers not to facilitate any form of online gambling promotion. We have done everything within the authority of Kominfo.

“We from the Ministry of Communication and Information are fully determined. At the beginning of the week I gathered all our teams at Kominfo to work together to eradicate online gambling.”