Introduction
Discussing Anti-Money Laundering (AML) rules in an engaging way can be a real challenge. The iGaming industry often overlooks anything filled with jargon like Know Your Customer (KYC), Customer Due Diligence (CDD), and Source of Wealth (SoW)—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.
Not anymore.
Changes in Curacao’s AML Regulations: An Overview
A significant shift has occurred with Curacao’s recent overhaul of its AML regulations, set to take effect on September 1, 2024. This update has sparked quite a debate among gambling operators who view these new rules as unwelcoming, particularly since Curacao is known for its slow pace in updating its gambling regulations. But is it really as bad as Curacao’s deadline management suggests?
Curacao is continually revamping its regulatory frameworks, taking inspiration from Malta—'Maltifying' the industry may be the best way to describe this process. The new AML rules, while seen as burdensome, are a balanced update aligning Curacao's practices with generally accepted standards.
Curacao is continually revamping its regulatory frameworks, taking inspiration from Malta—'Maltifying' the industry may be the best way to describe this process. The new AML rules, while seen as burdensome, are a balanced update aligning Curacao's practices with generally accepted standards.
Key Aspects of Curacao’s New AML Regulations
- 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 must have a dedicated AML officer, equipped with sufficient resources and headcount to manage risks effectively.
- Policies and Guides: More internal documents, rules, and practice guides are expected from operators holding gambling licenses 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. T
The webinar hosted by 4H Agency and Hipther Agency took a deep dive 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 detailed as Curacao's 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, 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 Curacao’s reformatory steps if the country intends to make iGaming an important factor of the now-struggling economy.
Conclusion
The evolution of AML regulations in Curacao represents a predictable shift towards a more robust regulatory environment, aligning more closely with global gambling industry standards. While initially perceived as onerous, these changes align with international practices and the rules already in force in competing jurisdictions.
