News Government Announces Exemption for Gambling Sectors Under New Money Laundering Requirements

Casinos to be the only UK gambling sector subject to the EU 4TH Money Laundering Directive

Date: 20 March 2017
Author/Solicitor: Nick Arron

“HM Treasury has published its response to consultation on the EU 4th Money Laundering Directive and has decided that all gambling sectors should be exempt from the new regulations, except for remote and non-remote casinos.

The National Risk Assessment classified the gambling sector as low risk in relation to other regulated sectors, based in part on several mitigating factors including the legislative framework that gambling operators are subject to and the regulatory control exercised by the Gambling Commission.

This maintains the status quo in the gambling sector, with only casino operators required to comply with the Money Laundering Regulations once they take effect. The government is, however, aware that money laundering risks within different gambling sectors can vary over time so they will continue to evaluate the industry and may look to apply the new Regulations to other sectors at a later date. Operators are therefore encouraged to continue raising standards and ensure compliance with the Gambling Act and Licence Conditions and Codes of Practice set by the Commission.”

The full response can be found here:

https://www.gov.uk/government/consultations/money-laundering-regulations-2017

For further information about this or any other gambling issues contact Partner and Head of Betting and Gaming Team Nick Arron on 0115 953 8500.