UKGC Adds New AML Requirements for iGaming Operators

Article by : Erik Gibbs Dec 3, 2024

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The UK Gambling Commission (UKGC) has introduced stricter anti-money laundering (AML) and counter-terrorism financing (CTF) rules for gambling operators as part of changes to its licensing requirements. Effective November 29, these measures are intended to bolster accountability and improve governance within the sector.

The updates, introduced through revisions to the Licence Conditions and Codes of Practice (LCCP), now mandate that certain senior roles within gambling organizations obtain personal management licenses (PMLs). This requirement applies to individuals holding key leadership positions, such as CEOs or managing directors, and those chairing boards of directors.

A significant aspect of these changes is the enhanced focus on AML and CTF responsibilities. For casino operators, the designated compliance officer, often a senior manager or board member, must now hold a PML. 

Similarly, the nominated officer in charge of reporting suspicious financial activities is also subject to this requirement. Non-casino operators are not exempt; they, too, must ensure that personnel overseeing these compliance activities meet the updated licensing standards.

These adjustments aim to clarify and expand existing requirements, ensuring that senior leaders are directly accountable for regulatory adherence. By formalizing these responsibilities, the UKGC seeks to strengthen safeguards against financial crime in the gaming industry. While smaller operators are excluded, the changes impact most of the sector, emphasizing the importance of effective leadership in maintaining compliance.

In addition to these licensing updates, the industry is preparing for the introduction of a statutory tax on gambling operators starting in April 2025. This tax will replace the current voluntary contributions system and is expected to raise approximately £100 million (US$127 million) annually. The funds are earmarked for initiatives aimed at reducing gambling-related harm, with the government planning a review of its effectiveness by 2030.

The statutory tax has sparked mixed reactions. Public health advocates view it as a vital step in addressing the social impacts of gambling, while industry stakeholders have raised concerns about its timing and execution. These concerns come as other measures from the government’s recent White Paper are still being implemented.

Law firm Wiggin, specializing in media and technology law, has highlighted the importance of evidence-based oversight to ensure the tax achieves its goals. It argues that transparent processes and measurable outcomes are crucial for monitoring the initiative’s success. If properly executed, the tax could reduce its financial burden on operators over time by focusing resources on areas of greatest need.

The UKGC’s latest reforms reflect a broader push to modernize the regulatory framework for gambling, balancing tighter controls with a commitment to addressing societal challenges linked to the industry.