Financial Crime World

MALTA’S TOUGH STANCE ON AML/CFT: MGA EXTENDS ITS REACH IN FIGHT AGAINST FINANCIAL CRIME

The Malta Gaming Authority (MGA) plays a vital role in regulating the country’s gaming and casino industries, and its supervision over anti-money laundering and combating the financing of terrorism (AML/CFT) regulations has come under scrutiny. In this article, we’ll explore how the MGA is extending its assistance and cooperation as an “agent” of the Financial Intelligence Analysis Unit (FIAU), and what this means for casino and gaming licensees.

The Importance of AML/CFT Compliance

Under the Prevention of Money Laundering and Funding of Terrorism Regulations (PMLFTR), the MGA is responsible for monitoring compliance with AML/CFT regulations among casino and gaming licensees. This includes:

  • Monitoring adherence to the Prevention of Money Laundering Act (PMLA)
  • Implementing procedures issued by the FIAU
  • Reporting any non-compliance to the FIAU

Risk-Based Approach to AML/CFT Measures

Casino and gaming licensees offering Type 1, 2, and 3 games must adopt a risk-based approach in applying AML/CFT measures, controls, and procedures. This includes:

  • Conducting a business risk assessment to understand potential risks and vulnerabilities
  • Devising a customer acceptance policy
  • Transcribing AML/CFT policies and procedures

The Role of the Money Laundering Reporting Officer (MLRO)

Licensees must appoint an MLRO of sufficient seniority who is responsible for:

  • Analyzing unusual or suspicious activity
  • Filing suspicious transaction reports with the FIAU
  • Being registered with the FIAU and approved by the MGA as an approved Key AML Function

Implementing Procedures: Guidance on AML/CFT Obligations

The Implementing Procedures issued by the FIAU provide further guidance on AML/CFT obligations. These procedures are divided into two parts:

  • Part I applies to all sectors
  • Part II is specific to each sector, including remote gaming and land-based casinos

The Significance of MGA’s Expanded Role

As Malta continues to solidify its reputation as a leader in responsible gaming regulation, the MGA’s expanded role in enforcing AML/CFT regulations is a crucial step in preventing financial crime and maintaining the integrity of the industry. By extending its assistance and cooperation with the FIAU, the MGA is demonstrating its commitment to combating financial crime and ensuring that Malta remains a safe and secure destination for gaming and casino activities.

Key Takeaways

  • The MGA has extended its reach as an “agent” of the FIAU in enforcing AML/CFT regulations
  • Casino and gaming licensees must adopt a risk-based approach to AML/CFT measures, controls, and procedures
  • Licensees must appoint an MLRO of sufficient seniority and register with the FIAU and obtain approval from the MGA
  • The Implementing Procedures issued by the FIAU provide guidance on AML/CFT obligations for licensees
  • MGA’s expanded role in enforcing AML/CFT regulations is crucial in preventing financial crime and maintaining industry integrity.