Gambling Commission publishes 4AMLD update

Gambling Commission_8The Gambling Commission has published on its “AML: Latest anti-money laundering news” webpage the following update on the 4th Anti-Money Laundering Directive:

“On the 5 June 2015, the 4th Anti-Money Laundering Directive was formally adopted. The 4th Directive allows Member States to exempt gambling sectors on the basis of proven low risk posed by the nature and scale of their services, following an appropriate risk assessment. HM Treasury are responsible for making any determination of low risk and exemptions.

The Treasury intends to consult on proposals in this area as part of the wider work to transpose the Directive, and all stakeholders will have the opportunity to contribute to the consultation process. The latest information provided by Treasury is that consultation on transposition of the Directive will be published by the end of the year.

In addition to any consideration concerning proven low risk, the transposition period provides opportunity for the industry to anticipate the requirements of new money laundering regulations.
Operators will need to consider the provisions within their strategic and operational planning, as they develop appropriate capability, policy and procedures.

On 23 June, the EU referendum took place and UK voted to leave the European Union. Until exit negotiations are concluded, the UK remains a full member of the European Union and all the rights and obligations of EU membership remain in force. During this period the Government will continue to negotiate, implement and apply EU legislation.

We will provide updates on implementation as we receive them.

Additionally, operators should also be aware that on 5 July 2016 the European Commission adopted proposals to make amendments to the 4th Directive. These proposals are still to be negotiated by member states and have not yet been incorporated into the 4th Directive.”

The EC’s proposed amendments (to which reference is made above) are summarised in a factsheet that can be downloaded below. They include a proposal to bring forward the transposition of the 4th Directive from 26 June 2017 to Q4 2016. Coupled with HM Treasury’s above-mentioned delay in consultation on transposition, this has served to introduce yet further uncertainty and concerns about an overly compressed timetable because, come that may, it is inevitable that transposition of the 4th Directive will occur before the UK leaves the EU pursuant to the Brexit vote.

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