Malta Gaming Authority: Growth and compliance must be kept separate
CEOs, finance and marketing directors should not hold compliance roles under new guidance
The Malta Gaming Authority (MGA) has published new “Key Function” guidelines saying egaming executives with compliance responsibilities cannot also be responsible for growth.
In one of the first regulatory changes after the passage of the Malta Gaming Act, the MGA has issued guidance requiring all its licensees to identify persons responsible for “key functions” within their respective businesses.
In the guidance, the MGA pointed out two potential conflicts of interests, including the fact that compliance-based roles are incompatible with roles centred around the growth of the business, namely those of CEO, chief finance officer and chief marketing officer.
According to the MGA guidance, individuals who hold these roles should not also hold any function or role relating to compliance with licensing, player support or responsible gambling.
The second identified conflict of interest states that money laundering reporting officers (MLRO) and data protection officers should not take on any other duties that could prejudice their effectiveness in their respective roles, for example a MLRO who is also a CEO. In addition, individuals in charge of internal audits for any licensee are not expected to hold any other business function.
The new key functions criteria replace the existing ‘key official’ requirements enshrined in previous regulations, which defines a key official as “a person nominated by the licensee who is a director of the licensee”.
That person must be approved by the Authority subject to the requirements that they should be present in Malta at all times, be a director of the licensed legal entity and be ‘fit and proper’ to assume that task.
Under the new regulations any individual falling under the key function criteria must be declared to the MGA, who will perform an assessment of their fitness and propriety to carry out that key function.
Only individuals who meet this criterion will be issued with a key function certificate for the relevant function or functions.
Persons not already known to and approved by the MGA, who have been earmarked to provide key functions, are required to be notified to the MGA between 1 August 2018 and 30 September 2018 and submit all the required documentation.