Compliance Updates
How Curacao new AML requirements differ from other flexible license jurisdictions
![How Curacao new AML requirements differ from other flexible license jurisdictions](https://europeangaming.eu/portal/wp-content/uploads/2024/07/EG-X-4H.jpg)
By: Dmitry Hotsyn, Senior Consultant and Head of CIS Desk at 4H Agency
Discussing Anti-Money Laundering (AML) rules in a way that keeps everyone awake is a real challenge. The iGaming industry often overlooks anything filled with jargon like KYC, AML, CDD, and SoWs—terms that just breed myths and misconceptions about jurisdictions supposedly having lax AML standards and low compliance burdens. For a while, Curacao was viewed as one of these almost mythical places.
Not anymore.
A significant shake-up has occurred with Curacao’s latest overhaul of its AML regulations, set to take effect on September 1, 2024. This update has triggered quite a bit of debate among gambling operators who view these new rules as unwelcoming, especially since Curacao is known for its sluggish pace in updating its gambling regulations.
But may it really be as bad as Curaçao’s deadline management?
Curacao’s AML Regulatory Changes: An Overview
Curacao is continuously revamping its regulatory frameworks, taking a page from Malta’s book — Maltifying the industry may work best to describe this process. The new AML rules, while perceived as burdensome, are in fact a balanced update alligning the Curacao practices with generally acceptable standards. Key aspects of the new regulations include:
- Clear Customer Due Diligence (CDD) thresholds: Operators must conduct CDD at the earliest practical time, but no later than when a player engages in a transaction amounting to approximately EUR 2200;
- Sanction and Politically Exposed Persons (PEP) Screening: Mandatory for at least EU, US and UN sanctions lists;
- High-Risk Indicators: A detailed list of indicators for high-risk cases has been provided, noting that the use of cryptocurrencies increases risk, though it is not outright prohibited;
- AML Officer Role: Each operator shall have a dedicated AML officer, equipped with sufficient resources and headcount to manage risks effectively;
- Policies and Guides: Ah year, more internal docs, rules and practice guides are expected from the operators holding licences in Curacao.
Despite the extensive nature of Curacao’s new rules, in essence, they closely resemble those enforced in Malta and other EU countries, as well as competing jurisdictions offering flexible licenses. The upcoming webinar hosted by 4H Agency and Hipther Agency will delve into these comparisons, focusing on jurisdictions like Anjouan, Kanawake, and Tobique, alongside Curacao.
Key Insights on AML Across Jurisdictions
- Detailed AML Frameworks: Curacao and Tobique lead with the most comprehensive AML regulations. Kanawake’s requirements are also robust albeit not as detailes as Curacao rules;
- CDD Thresholds: Similar financial thresholds exist across these jurisdictions (approximately EUR 2000), with varied stipulations on the timing of CDD post-player registration (again, Curacao is not the leader here);
- Outsourcing AML Functions: All jurisdictions permit outsourcing some AML activities to third-party providers, providing flexibility in compliance strategies;
- Stringency of Regulations: Tobique’s regulations are notably stringent, casually requiring additional checks like adverse media searches to identify higher risk profiles;
- Anjouan the Outlier: Anjouan stands out for its outdated AML framework, lacking specific provisions for the gambling sector. For now, this could attract operators seeking more AML-friendly environments. However, Anjouan will inevitably follow the Curacao’s reformatory steps if the country intends to make iGaming an important factor of the now-struggling economy.
The evolution of AML regulations in Curacao represents a predictable shift towards more robust regulatory environment, aligning more closely with global standards. While initially perceived as onerous, these changes are in line not only with international practices, but with the rules already in force in a competing jurisdaction.
Our upcoming webinar will further explore these developments, providing attendees with comprehensive insights into flexible licensing options in 2024.
Compliance Updates
Octoplay Secures Greek iGaming License
![](https://europeangaming.eu/portal/wp-content/uploads/2024/08/7-8.jpg)
Online casino game development company Octoplay has secured another key license to launch its content in Greece’s regulated iGaming market, further expanding its presence in Europe.
This latest achievement builds on Octoplay’s recent string of regulatory approvals, including licenses in the United Kingdom, Ontario, Sweden, and Romania. The company’s rapid expansion into regulated markets demonstrates its ability to meet diverse regulatory requirements while delivering high-quality gaming content to an expanding player base.
With the Greek license now secured, Octoplay can introduce its innovative game portfolio to Greek operators and players, adding to its existing offerings in other European markets. This move aligns with the company’s strategic focus on expanding its footprint in regulated jurisdictions and collaborating with tier 1 operators to deliver premium gaming experiences.
Carl Ejlertsson, CEO of Octoplay, commented on the company’s latest regulatory milestone: “Securing the Greek license is a significant step in our growth strategy, to provide our games to operators in all regulated markets.”
The company’s portfolio of engaging slot games has garnered significant interest across the industry, driving Octoplay’s efforts to secure licenses and partnerships in key jurisdictions. This expansion not only broadens Octoplay’s reach but also enables more operators to access the high-quality content their player’s demand.
Compliance Updates
Proxyrack automates its KYC compliance by integrating iDenfy’s software
![](https://europeangaming.eu/portal/wp-content/uploads/2024/08/Proxyrack-automates-its-KYC-compliance-by-integrating-iDenfys-software_20240821_200615_0000.png)
iDenfy, a Lithuanian-based RegTech and identity verification company, announced a new partnership with Proxyrack, a leading provider of proxy solutions based in Hong Kong designed to enhance online proxy data-collection capabilities. Through this collaboration, both businesses will improve Know Your Customer (KYC) processes, ensuring more accurate and efficient user registration and higher approval rates for Proxyrack’s network.
Proxyrack operates in the tech industry, providing a vast network of residential and data center proxies to businesses and individuals. These services are essential for web scraping, market research, ad verification, and bypassing geo-restrictions. What sets Proxyrack apart is its commitment to fostering innovation and creativity, as well as striving for accuracy by providing diverse IP addresses and scalable performance to meet diverse user needs as the company’s values align with the clients’ requirements and eagerness to bring any ideas to life.
Proxyrack’s internal research showed that hiring an in-house Know Your Customer (KYC) specialist team would require more financial resources and highly skilled compliance professionals. For this reason, the proxy service provider decided to partner with a highly efficient and established third-party KYC vendor. After a thorough evaluation of several identity verification providers, Proxyrack selected iDenfy for its exceptional flexibility and competitive pricing.
According to the Proxyrack team, iDenfy’s solution stood out as it offered customizable screening options that ensured users were not miscategorized, which was the main issue that Proxyrack encountered while working with the previous KYC providers. Currently, Proxyrack uses iDenfy’s biometric identity verification solution which according to the company has resolved significant issues and increased work efficiency. As the main thing of users’ miscategorization iDenfy’s solution worked seamlessly from the start, providing peace of mind that user data is secure and verifications are highly accurate.
According to Proxyrack, iDenfy was chosen because of the flexibility the system offers, which their previous providers could not offer. iDenfy’s options for screening candidates and ensuring accurate user categorization were exactly what they needed. Additionally, the competitive pricing was a pleasant surprise, and it ended up being more cost-effective than expected.
Another standout feature of iDenfy is their pricing model, which charges only for successful verifications, unlike other competitors that charge for all attempts. This approach significantly reduces costs and ensures that clients only pay for results. iDenfy’s competitive pricing policy makes their services more cost-effective without sacrificing users’ reliability or other compliance check benefits compared to other providers in the industry.
In addition, iDenfy’s identity verification solution is able to automatically recognize, verify and extract information from 3000+ identity documents across 200 countries and territories including various passports, ID cards, licenses and permits to accurately identify documents on a global scale and to check the authenticity of users.
As for future plans, Proxyrack’s top priority as a company is to ensure that their customers are of the highest caliber, providing data-collecting solutions at scale for users who trust them with their public web scraping needs. The partnership with iDenfy aligns perfectly with this goal, enhancing Proxyrack’s ability to deliver secure and reliable services. In the future, based on the positive experience, Proxyrack is also thinking of expanding and using additional iDenfy’s fraud prevention solutions.
“A growing proxy user network means that a fully automated approach to KYC compliance is required. We’re glad to be able to help Proxyrack with their goal to scale faster and onboard more new users in less time, which is a vital factor in today’s highly competitive market,” commented Domantas Ciulde, the CEO of iDenfy.
Compliance Updates
Referral Fi2024/01087, Closing state casinos and a more effective money laundering supervision
![](https://europeangaming.eu/portal/wp-content/uploads/2024/08/14-2.jpg)
BOS comments on the government’s closure of Casino Cosmopol, Sweden’s last remaining land-based casino:
“OK to close the state casino but at the same time open up for private initiatives”
The Swedish Trade Association for Online Gambling (BOS) today submits its opinion on the government’s initiative to close the last physical casino in Sweden, state-owned Casino Cosmopol in Stockholm.
BOS supports the proposal, agreeing with the government’s argument that governments should not operate casinos. At the same time, BOS believes that the government should allow private land-based casinos in Sweden. This is currently prohibited and is proposed by the government to be prohibited in the future as well. As a consequence, Sweden will therefore not have a single legal land-based casino in the near future.
“Land-based casinos play a very small role in terms of their turnover, but they still have a function in the overall ecosystem of the gambling market. In addition, they fulfill a function for Sweden as a tourist country and to deter illegal gambling clubs. We propose that the government, at the same time as they close their own government casino, open up for private companies to offer land-based casinos in Sweden”, says Gustaf Hoffstedt, Secretary General, BOS.
The government’s memorandum can be read in Swedish here: https://www.regeringen.se/rattsliga-dokument/departementsserien-och-promemorior/2024/05/avvecklande-av-statliga-kasinon-och-en-effektivare-penningvatttillsyn/
The BOS opinion statement can be read here:
- It shall no longer be permitted to operate casinos in Sweden
The Ministry of Finance’s proposal: a) The gambling form gambling at a casino should no longer be included in the state gambling license type, b) Nor should any other license type be able to grant the right to provide gambling activities at a casino.
BOS approves proposal (a) and disapproves proposal (b).
- The restriction on state lotteries should be removed
The Ministry of Finance’s proposal: There should be no special restrictions on the types of lotteries that may be provided with a state gambling license.
BOS disapproves the proposal.
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