The Anti-Money Laundering laws were enacted to help with the detection and reporting of money laundering activities. The legislature felt that people were getting money through fraudulent means and then putting it into a genuine system such as insurance, real estate, and gambling to cleanse it.
Casinos around the world are subject to the AML, POCA, and FATF acts. The acts require casinos to comply with the guidelines to mitigate potential criminal activities which might affect the reputation of the casinos.
Maintaining a written AML compliance program
When the BSA (Bank Secretary Act) was enacted in 1970, it did not cover the gambling industry. The Act was expanded in 1985 to include commercial casinos. It is worth noting that online security is usually very tight at a real money casino.
User data and money in user accounts are kept safe through strong security strategies. The AML is a mandatory requirement by all casinos since they are grouped under financial institutions. The guidelines require them to include programs that govern casinos concerning product-based risks, clients, geo-location, and services.
How AML is maintained in the gambling industry
The casino games industry covers land-based casinos, online casino games, and esports gambling. The AML program must include features such as:
- External and internal compliance controls.
- An independent testing entity that ensures compliance is implemented.
- A training program involving employees to create money laundering awareness.
- Legal procedures for obtaining further information on gamblers suspected of using laundered money in gambling.
- An elaborated reporting system that does not raise suspicion among suspects.
Responsibility for combating money laundering
Casinos are called upon to help the government combat all money laundering activities across the states. They have a responsibility to combat the circulation of money coming from terrorist activities based on the money laundering law under AML and CTF guidelines. All suspected gambling activities involving unclean money must be reported. The casinos are required to be in contact with the Gambling Commission and Suspicious Activity Report (SAR).
They should report anyone suspected of an attempt to engage in gambling activities using laundered money. The purpose of implementing an AML system is to help with conducting regular inspections. The approach they adopt should be risk-based in identifying possible financial crimes. They must identify both entry and exit points and characteristics of money laundering activities within the casino.