MGA Requires Licensees to Comply with AML/CFT Standards

Jul 19, 2017
MGA Requires Licensees to Comply with AML/CFT Standards

Malta Gaming Authority has required all its stakeholders to comply with the Anti-Money Laundering/Combating the Financing of Terrorism (AML/CFT) standards. Failure of the stakeholders to do so would result in the cancellation of their license.

Online gaming companies and operators licensed by MGA hold a great deal of reputation in the industry. Players regard these online casinos as trustworthy as the regulatory body holds high regard for integrity and credibility. It is to this effect that some Bitcoin casinos take pride in their MGA license.

AML/CFT standards

Financial Intelligence Analysis Unit

MGA recently published a joint industry consultation along with the Financial Intelligence Analysis Unit (FIAU). The document talks about an upcoming change to the business policy within the EU territory. This change is done to meet the AML/CFT standards in the EU.

The updates to the business policy of Malta Gaming Authority will help strengthen the territories counter criminals who launder money through gambling sites or are receiving funds from the site. MGA is looking to adopt its policy to the new regulations set by the European Parliament and Council.

MGA stakeholders that have a license with the regulatory board will need to have its business meet the AML/CFT standards of the European Parliament and Council. This change will be placed in the Maltese Law of Directive (EU) 2015/849.

The MGA, along with the FIAU, released the initial outline on what license holders must do to comply with the changes in its policy.

The consultation document from both the MGA and FIAU will act as the basis for future documents that will have sector-specific guidelines on the changes. This will be done at a later stage after the consulting with the remote gaming sector. There are five primary sections in the consultation documents which are based on the AML/CFT obligation of subject persons.

Stakeholders or license holders who may have questions or are looking to send in their feedback regarding the consultation document can do so by using the email legal@fiumalta.org. Feedbacks are accepted until Aug. 11 next month.

Malta Gaming Authority

The Malta Gaming Authority is considered a pioneer in regulating online gaming. The regulation body was the first to adopt lotteries and iGaming acts. One of which is the Remote Gaming Regulations that the MGA set in 2004. This allows an operator to offer online and mobile gaming without applying for multiple licenses. By being the first to set the standards in the iGaming industry, regulatory bodies in other districts follow MGA’s example.

MGA is strict with its regulations when it comes to openness and fairness. License holders like NetBet and Red Flush Casino must have its office in the country of Malta. They must also submit their software to test for its fairness.

Once an operator has a license, they must also follow the MGA conditions to maintain it. This includes proper upkeep of an operator’s financial records, utilization of a financial measure to protect its customer’s funds, and strict adherence to the responsible gambling policy.