British regulator to beef-up anti-crime controls
Gambling Commission puts forward proposed changes to LCCP as part of wider consultation on keeping crime out of gambling
Great Britain’s Gambling Commission has set out plans to strengthen the licensing code in order to better protect the gambling industry from becoming embroiled in criminal activity.
The regulator has published a series of proposed amendments to the licensing code and conditions of practice (LCCP) on which it will consult with industry and the public before adopting the changes next year.
The Commission said new licensing requirements were needed after it had become aware of instances of poor practice among operators, while advancements in technology and consumer habits had moved the goalposts since the 2005 Gambling Act came into force.
Among the new proposals is a requirement for operators to conduct “an appropriate assessment of the risk of their business being used for money laundering” which must be reviewed annually and provided to the Commission on demand.
Licensees will also be expected to take “reasonable steps” to identify and monitor customers who present a heightened risk of money laundering.
“The consultation proposes a number of specific changes to licence conditions in the light of experience,” a spokesperson from the Gambling Commission said.
“[It] offers an opportunity for everyone to have their say on a series of critical questions. We expect that licensees will want to share their own experience and good practices in order to help keep gambling crime free,” the spokesperson added.
The review comes at a time when work on implementing the 4th European Union Anti Money Laundering Directive, adopted in June, is well underway. However, the Commission stressed that changes to the LCCP were not related.
The Commission has invited responses to the proposals by 30 December, with the amended provisions expected to come into force in 2016.
AML infractions have been rare in the UK, although last month Rank Group forfeited almost £1m in profits after a Gambling Commission investigation found it wasn’t taking suitable steps to protect against money laundering and fulfil its social responsibility obligations in two separate cases.
And earlier this week the Responsible Gambling Trust announced that Rank Group chief executive Henry Birch had joined its board.