With many cases of money laundering reported in the gambling world of Europe, there was pressure on the European Union to act. After much deliberation, they have come up with a series of laws that gets tough on gambling companies in the area. The European Parliament passed a law that requires gambling company owners to register with public registries. This ensures that they are not anonymous, can be easily monitored, and keeps their finances in the government’s eye.
It is possible for state governments to choose which corporations belong under this law. Gambling institutions that are seen as low risk for money laundering schemes can be exempt, but everyone else will have to register. There will be an easily accessible online system for registering, and for anyone wishing to take a look at the information. In order to manage both privacy and the need for public information, companies only have to publish minimum details about their business practices.
Along with this registration, customer due diligence must be performed on anyone who is receiving more than 2,000 euros in winnings.
Importance of Transparency –
Tax evasion, money laundering, and issues with both winning recipients and the gambling institutions have been rife the past five to ten years. This law was always going to come to fruition, and it is a major victory for governments of all European states.
Legislation Pleases Lottery Companies –
Friedrich Stickler, who is the president of the European Lotteries, stated that he was pleased with this move from governments. With the gambling industry handling so many transactions every day, the possibility for money laundering is rife. With this transparency, it makes laundering a lot more difficult, but not yet impossible.
While this is not a permanent victory over money laundering related to gambling, it is a step in the right direction for the EU. More details about the laws can be found here.