The article titled ‘Mafia probe may mean gaming sector scrutiny’ (September 6 and online titled ‘Ndrangheta ran a €2bn money- laundering operation in Malta through Malta based online betting’) includes factual inaccuracies and incorrect assumptions the Malta Gaming Authority feels need to be rectified.
The inclusion of the online gaming sector in the revised anti-money laundering directive predates the gambling probe referred to in the article as Operazione gambling and had long been part of discussions within the EU among competent authorities and member states.
Furthermore, the increase in supervisory scrutiny and ongoing checks that are under way are a result of the new requirements and obligations that shall ensue further to the transposition of the fourth anti-money laundering directive into national law.
It should be noted that the probe quoted by Europol refers to an investigation between 2006 and 2014 that was used as an example of how the sector could be susceptible to certain criminal risks.
Furthermore, the fourth anti-money laundering directive was published in May 2015 (with gaming operators being obliged persons).
The investigation mentioned in the report occurred in July 2015, therefore, this alone is an attestation to the fact that the inclusion of gaming operators in the fourth directive was not a result of this incident. Nevertheless, further to this case, the Malta Gaming Authority conducted a review of all its internal processes to assess any vulnerabilities and then stepped up its mitigating measures to target any potential risks.
Needless to say, certain economic sectors that are not operating within a strong regulatory framework which is continuously updated may be targets of criminal activity. To this effect, the government remains committed to the gaming sector and welcomes the upcoming gaming regulatory framework overhaul, which, together with the recently-published consultation on anti-money laundering procedures published by the MGA jointly with the FIAU, shall complement and strengthen the Malta jurisdiction as a centre for excellence. See http://www.mga.org.mt/mga-fiau-publish-public-consultation-application-anti-money-laundering-countering-funding-terrorism-obligations-remote-gaming-sector/ .
The development of the gaming regulatory framework is supported by the authority’s beefing up of human resources, upskilling, information management and IT tools, together with outsourced specialised professional services, which together shall effectively help the local supervisory authorities step up efforts to effectively tackle any vulnerable areas and threats being faced by the local gaming industry.