EGBA Welcomes the Approval of the New EU Anti-Money Laundering Framework

31 May 2024

The European Council approved the new EU anti-money laundering (AML) package yesterday, marking the completion of the EU’s new framework to combat financial crime. The Council’s approval is the final step in the EU legislative process, following the European Parliament’s approval last month. The European Gaming and Betting Association (EGBA), representing Europe’s leading online gambling operators, welcomes the completion of the new AML package and believes the regulatory changes will strengthen the EU’s approach to tackling money laundering.

The final legislative package provides for:

The creation of the European Anti-Money Laundering Authority (AMLA) – Based in Frankfurt, AMLA will have both direct and indirect supervisory powers to ensure compliance with AML requirements, working in conjunction with national AML authorities. AMLA will be responsible for a large number of technical and implementation rules that will apply directly to the online gambling sector.

The 6th Anti-Money Laundering Directive – Contains national provisions on supervision and the powers of national AML authorities, including their access to necessary and reliable information such as beneficial ownership registers.

A new Anti-Money Laundering Regulation (AMLR) – Covers requirements for carrying out due diligence, transparency of beneficial owners, and more, guiding practitioners through the entire AML process for obliged entities. The regulation sets a limit of 2,000 euros for carrying out due diligence on players for online gambling operators.

A key feature of the new package will be the creation of a harmonized format for Suspicious Transaction Reports (STR), overseen by AMLA. This will mean that online gambling operators in Europe will find the same STR requirements in all EU member states, establishing consistent requirements that will reduce administrative burdens and costs.

To assist online gambling operators, EGBA has developed industry-specific guidelines on combating money laundering that apply a risk-based approach and include practical measures operators can take to ensure compliance with EU AML rules. EGBA members already apply the guidelines and submit annual reports to EGBA summarizing their progress in implementing their measures. The guidelines are also open to all EU-based operators, and EGBA encourages operators to sign up for them.

Since the guidelines take into account the European Commission’s original AMLR proposal, EGBA members are already making significant progress towards complying with the new EU rules. The guidelines will be updated to align with the final versions of the EU legislation.

The new AMLR will come into effect three years after its publication in the Official Journal of the EU, which is the next step in the process.

“We welcome the completion of the new anti-money laundering package. EGBA has actively followed and contributed to the review of AML rules at the EU level and believes the new rules will benefit online gambling operators in Europe, especially those operating in multiple jurisdictions, by ensuring a single regulatory approach across all EU member states. With the finalization of the new rules, EGBA will review and update its industry guidelines on AML to ensure alignment with the standards. By signing up for the guidelines, operators can start preparing for the EU regulatory changes and join our members in their efforts to proactively and positively contribute to the fight against money laundering in the EU.” – Dr. Ekaterina Hartmann, Director of Legal and Regulatory Affairs, EGBA.