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Gambling act has AML implications – MF

Lawyers at McCann FitzGerald have highlighted changes in new gambling legislation linked to anti-money-laundering (AML) obligations.

The firm says that, while the changes are not extensive, they are important, and providers of gambling services will need to ensure that they are aware of them.

In a note on the firm’s website, McCann FitzGerald points to recent record fines handed down by Britain’s Gambling Commission for AML failings. 

The firm also notes a 2022 European Commission assessment of the online gambling sector as “high risk” in terms of AML.

New authority

One of the main changes to be introduced by the recently enacted Gambling Regulation Act 2024 is the establishment of the Gambling Regulatory Authority of Ireland (GRAI).

The note points out that the GRAI will replace the Department of Justice as the competent authority for AML issues.

The lawyers also note that a new gambling licensing regime for private members’ clubs will replace current AML legislation, but they add that “historic failures to comply with the older regime will remain relevant”.

McCann FitzGerald adds that the current category of a ‘designated person’, which specifically captures ‘a casino’ or ‘a person who effectively directs a private members’ club at which gambling activities are carried on’, will be replaced by the more general concept of a provider of ‘gambling services’.

‘Designated person’

“Consequently, providers of gambling services that currently operate on the basis that they are not a ‘designated person’ will need to carefully re-examine the scope of their activities by reference to the amended legislation,” the lawyers say.

In addition, they note that some measures in the 2024 act – in areas such as suspicious gambling patters and customer information – may overlap with AML obligations.

While the 2024 act will not come into force until it has been commenced by ministerial order, McCann FitzGerald says the lead-in time should give gambling-service providers an opportunity to ensure that they are fully compliant with AML requirements.