EGBA welcomes European Parliament's approval of new AML package for the EU

Through a press statement, the European Gaming and Betting Association (EGBA) has welcomed the European Parliament's approval of a new EU anti-money laundering (AML) framework.

According to the Brussels-based trade association, the EU’s new package will help create a more consistent regulatory framework and will benefit online gambling operators by standardizing AML rules and reporting requirements across member states.

The European Parliament approved the framework at its plenary sitting on Wednesday, a move seen as a significant milestone towards a new EU framework for combatting financial crime. The AML package now awaits formal adoption by the Council of the EU, expected in May, before being published in the EU’s Official Journal.

"The European Gaming and Betting Association, representing Europe’s leading online gambling operators, welcomes the Parliament’s approval of the new AML package and believes the incoming rule changes will strengthen the EU’s approach to tackling money laundering," the trade body stated.

The package contains a single rulebook regulation, with provisions on conducting due diligence on customers, transparency of beneficial owners and the use of crypto-assets. It also features the 6th Anti-Money Laundering Directive, containing national provisions on supervision and national AML authorities, as well as on the access of authorities to necessary and reliable information.

The framework also opens the door for the establishment of the European Anti-Money Laundering Authority (AMLA), which will have supervisory and investigative powers to ensure compliance with AML requirements, operating in conjunction with national AML authorities.

"EGBA believes the new rules will benefit Europe’s online gambling operators by ensuring a consistent regulatory approach across EU member states," said the association. "Another important feature, under the competence of AMLA, will be the creation of a harmonized reporting format for Suspicious Transaction Reports (STRs)."

The new reporting format for STRs will help ensure that Europe’s online gambling operators will encounter the same requirements across all EU member states, thereby setting clear and consistent expectations that will reduce administrative burdens and costs, according to EGBA.

Dr. Ekaterina Hartmann, Director of Legal and Regulatory Affairs at EGBA, said: “We welcome the European Parliament’s approval of the new anti-money laundering package. The new framework will set high standards and ensure greater consistency in the application of AML rules across the EU.

"Online gambling operators, especially those operating in multiple countries, will benefit from a single rulebook and harmonized reporting requirements that will unravel national complexities."

To assist its members in complying with the EU's AML rules, EGBA has developed industry-specific guidelines on anti-money laundering. The guidelines apply a risk-based approach and include practical measures that operators can take, encompassing customer and business risk assessments, customer due diligence processes, suspicious transaction reporting, and record keeping. 

EGBA members already apply the guidelines and submit annual reports to EGBA that summarise their progress in implementing its measures, the association highlighted. The guidelines are also open to all operators based in the EU and EGBA encourages operators to sign up to them.

In light of the newly approved package, Hartmann said the trade body will look to review its industry guidelines on anti-money laundering "to ensure their alignment with the new EU rules."

"By signing up to the guidelines, operators can already prepare themselves for the incoming changes in the EU rules and join our members in their efforts to proactively and positively contribute to the EU’s fight against money laundering," she added.