Financial Crime World

Belgium Cracks Down on Money Laundering Techniques in Gaming Industry

A New Era of Compliance: Belgium’s Anti-Money Laundering Act

In an effort to combat money laundering and terrorist financing, Belgium has enacted the Anti-Money Laundering Act, a law based on international standards set by the Financial Action Task Force (FATF) and the European Union’s 5th Anti-Money Laundering Directive.

Key Requirements for Gaming Operators

  • Implement strict measures to identify and verify the identity of players
  • Monitor transactions and report suspicious activity
  • Develop policies, procedures, and internal control measures to prevent money laundering and terrorist financing
  • Designate a responsible person within their organization who will be accountable for implementing these measures
  • Train staff on anti-money laundering laws and regulations

Enhanced Due Diligence Measures

  • Identify customers and monitor transactions, including bets over €2,000 or payouts of the same amount
  • Verify the identity of players using supporting documents before entering into a business relationship or processing a transaction
  • Heightened vigilance for atypical transactions that do not appear to match the characteristics of the player or seem intended for gaming purposes

Reporting and Storage Requirements

  • Report suspicious activity to the Financial Intelligence Processing Unit (CTIF-CFI)
  • Store identification details, transaction records, and written reports for 10 years

Enforcement and Consequences

  • The Gaming Commission (GC) is responsible for monitoring compliance with the Anti-Money Laundering Act
  • Violations can result in administrative fines ranging from €250 to €1,250,000, as well as criminal prosecution

Protecting Whistleblowers

  • The law provides a safe haven for whistleblowers who report suspected money laundering or terrorist financing activities

Conclusion

Belgium’s Anti-Money Laundering Act is a crucial step in combating money laundering and terrorist financing in the gaming industry. The law requires operators to implement robust measures to identify and verify customers, monitor transactions, and report suspicious activity. It also provides protection for whistleblowers who come forward with information on illegal activities.