Money Laundering and the Fight Against It
Money laundering (ML) refers to the process of legitimizing funds obtained through criminal means, such as illegal drug trafficking, terrorism, and other illicit activities. Criminals attempt to launder money by disguising the source or changing the form of the funds or moving them to a place where they are less likely to attract attention.
The fight against money laundering (AML) involves legal control measures that require financial institutions and other regulated organizations to prevent, detect, and report ML-related activities.
An effective AML program requires a jurisdiction to:
- Provide relevant regulators and law enforcement with the authority and tools to investigate ML cases.
- Require financial institutions to identify their clients, conduct risk-based controls, keep records, and report suspicious activity.
- Ensure the ability to exchange information with other jurisdictions, depending on the circumstances.
Regulation
Employees in the remote gambling industry are required to report any relevant information they encounter during their activities:
- When they know something;
- When they suspect something;
- When they have reasonable grounds to know or suspect that a person is involved in money laundering, terrorism financing, or spending criminally obtained funds.
This is collectively referred to as actual knowledge or reasonable suspicion. Authorities require proof that a risk assessment was conducted and carried out before entering into business relationships with clients, and that a comprehensive legal examination of client transactions corresponds to the level of associated risk.
The seller must be able to demonstrate that the extent of ongoing monitoring corresponds to the level of risk and that all records are kept with proper risk profile control. This document describes additional measures for risk monitoring and justifies the need for clients to declare the source of funds in high-risk situations that may indicate money laundering.
Special Regulations
The seller must ensure compliance with all business requirements and hold a Curacao Gaming License, allowing operation in the international gambling market through service lines.
Crime, Violations, and AML Policy
The anti-money laundering (AML) policy includes principles and practical approaches:
- Development of control systems and measures that correspond to the business specifics and legislative requirements.
- Annual assessment of risks associated with AML and the application of adaptive and economically justified response methods.
- Responsibility for the implementation of the AML policy, which applies to all employees, including management.
- Regular review and evaluation of the effectiveness of the measures taken.
- Maintenance of transaction documentation in accordance with requirements for conducting investigations into money laundering and financing of terrorism.
- Providing training for employees involved in AML processes.
- Providing designated employees with the necessary resources and autonomy for independent work.
Risk Management
Risk assessment and management strategies are employed to effectively counteract money laundering and terrorism financing:
- Identification of risks associated with money laundering and terrorism financing, specific to activities.
- Development and implementation of targeted policies and procedures to minimize and manage these risks.
- Constant monitoring and improvement of the effectiveness of control measures.
- Documentation of actions taken and justification of decisions made.
Efforts are focused on the most significant aspects to ensure maximum protection. The risk management policy is fully supported by management and staff and is regularly reviewed to comply with current conditions and requirements.
Suspicious Activity and Its Handling
Identifying and responding to suspicious activity is critical for securing transactions. Measures for user verification include:
- Checking documents that verify identity.
- Analysis of utility bills.
- Analysis of bank statements.
- Other methods of identity confirmation.
Special attention is given to players with unusual deposit patterns. Thorough checks are conducted if suspicious activity signs are detected.
Reports of Suspicious Activity
Employees are required to report any suspicions related to money laundering or terrorism financing. Unauthorized disclosure of information or its concealment carries legal consequences. Reports of suspicious activity must be confidential.
Work Procedures
Transactions and player activity are closely monitored to identify anomalies. Before approving withdrawals, the deposit history is verified to ensure legality and compliance with the client’s usual behavior.
Withdrawal Procedure
Before carrying out a withdrawal operation, the client’s actions are ensured to correspond with their usual bets and transactions. Funds are returned via the same payment method used for the deposit.
Monitoring Process
Strict AML rules are adhered to, and any suspicions are actively monitored and addressed. Ignoring indicators of suspicious activity is impermissible to ensure compliance with legislative requirements and protect the business from potential threats.
Accounting and Control
In accordance with obligations, an audit log is maintained to facilitate financial investigations. The accounting system includes:
- Documentation and control of compliance with regulatory requirements by designated personnel.
- Distribution of responsibilities for combating money laundering and terrorism financing among specialized employees.
- Recording cases when an employee did not take measures, with reasons specified.
- Registration of customer identification and verification procedures.
- Accounting for all significant business relationships and transactions.
- Records of employee training programs in the field of AML/CFT.
- Preparation and transfer of reports on suspicious activity to the appropriate structures.
- Interaction with law enforcement and national bodies on AML matters.
Thus, transparency and compliance with requirements related to the prevention of financial crimes are ensured.
Violations and Consequences
All employees are informed about the legal consequences in case of violating the following laws:
- Failing to report information about suspicious activity, which violates laws on criminal proceeds and anti-terrorism legislation.
- Criminal liability for employees who fail to disclose suspicious information properly or timely.
- Legislative violations related to disclosing or investigating money laundering or terrorism.
- Violations related to forgery, concealment, destruction, or mishandling of documents related to investigations.
Employees are aware of the seriousness of these violations and potential criminal consequences, emphasizing the importance of complying with legislation and internal company rules.
Compliance with Fraud Prevention and Data Protection Norms
The policy strictly prohibits fraudulent actions, and if detected, the client’s account will be blocked. Regarding data protection, Payment IQ service is used for encrypting and storing all customer payment data, ensuring that employees do not have access to sensitive information. Extensive security measures are implemented to protect customer data, including authentication systems, password policies, protection against malware, intrusion prevention, and effective network security management.
Internal Accounting and Reporting
The “Know Your Customer” principles are followed, and internal accounting ensures compliance with legislation. Data on transactions, client actions, and suspicious activity reports are stored for six years after account activity ends or the investigation is completed.
Know Your Customer (KYC)
By accepting the Terms, consent is given for necessary identity and contact information checks, required by the company or third parties, including regulatory bodies. Access to withdrawal may be restricted during these checks.
False or incomplete information may lead to the immediate blocking of the account and exclusion from services. If adult status cannot be confirmed, the account will be temporarily frozen. Minors who have made transactions will have their accounts prohibited, all operations canceled, and winnings confiscated.
Changes in personal data must be immediately reported to support services.
