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Gibraltar Financially Punishes Licensees for AML Violation

4 December 2020, 14:16
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The Gambling Division of Gibraltar found multiple law violations and fined some of its licensees for £2.5M in total. It was a part of the processes related to checking if the license-owners are adhering to the Anti-Money Laundering (AML) rules. Login Casino reviews the latest legislative news in gambling and explains what this shake-up means.

Gibraltar Financially Punishes Licensees for AML Violation

Being one of the most popular gambling license destinations, Gibraltar has already implemented the AML rules that business owners have to comply with. However, creating a law is only one side of the process because looking if the requirements are not ignored and imposing appropriate punishments is the other obligatory part.

Thus, the Gambling Division has found multiple violations of the AML initiatives and imposed financial punishments. The total amount of fines reached £2.5 million, which were sent to support the local university that was aimed at battling against money laundering. 

How did the local government explain this unexpected step?

Although the controlling bodies are not obliged to warn about inspections, such a step can change the licensor and licensees' disposition. Gibraltar is regarded as one of the most interesting gambling license destinations due to soft rules, small prices, but authoritative license. Now the country seems to follow the Maltese and Curacao practices, which are aimed at better control over the gambling operators and sector overall.

As the transitional process is always a challenging task for both sides, Gibraltar's government decided not to rely on the Proceeds of Crime Act (POCA) powers in terms of punishment. However, the local gambling license seems to become a stricter and more authoritative in the market.

The punishment step goes in parallel with a technical improvement that is aimed at adherence to the AML practices and better social responsibility. The same approach is now required from the license-holders by the Gambling Division of the state. Officials don't exclude that they can rely on POCA if the mistakes are not fixed or apply other law violators' punishments.

Read moreWhat should one know about gambling licenses in Europe?

Read moreWhy is Maltese online gambling license among the most popular ones?

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