General elections and gambling legalization in Brazil, EU to strengthen money-laundering rules

 

Europe

The European Gaming and Betting Association (EGBA) has supported the consistent application of anti money laundering (AML) rules across all the EU territories. The European Commission launched consultations over the legislative proposals to strengthen AML in July this year. According to the proposals a new centralized body Anti-Money Laundering Authority (AMLA) should launch in the EU. It will cover all countries across the European Union.

New black and grey lists will be established to define the countries that have the highest money laundering risks. Cash payments will be limited to €10,000, and existing AML controls will be extended to the crypto assets sector.

The EGBA welcomed the fact that gambling was included in the proposals. The association is ready to support the first pan European guidelines for tackling money laundering in online gambling. The EGBA believes that Europe lacks such control now. The EGBA added that the roles of the AMLA and national authorities should be clearly divided in order to prevent duplicate reporting, which in turn could reduce administrative and compliance costs.

Ivan Kurochkin’s comments

The most significant part is that the new package of legislation is quite substantial. In the past, the EU were trying to improve their AML measures with a set of directives, of which there were 5 in the past. A "directive" is a legislative act that sets out a goal that all EU countries must achieve. However, it is up to the individual countries to devise their own laws on how to reach these goals.

With the new legislative package, the EU issues a new, 6th Directive, having announced the creation of a dedicated EU Anti-Money Laundering Authority as well as mandating some of the provisions of the previous 5th directive to be transposed into national law, such as rules on national supervisors and financial intelligence units in Member States.

"This would contribute to uniformity of the legislation across the Union" — stressed Ivan.

 
Another important aspect when it comes to the EGBA’s relationship with EU legislators is that inclusion of gambling in the legislative package also opens the way for EGBA to offer more assistance to the EU with such aspects like AML measures, as gambling has a long and challenging history of dealing with the risks of the fraudulent financial activity and in some respects, using the lessons learned in gambling regulation may offer additional ways to improve the overall AML measures and regulations in the EU.