17/03/2017.

The entire gambling sector – instead of just casinos as at present – will come under new regulations, which aim to transpose European legislation that brings the UK’s existing anti-money laundering regime into line with international Financial Action Task Force standards.

However, in a consultation focusing on whether the draft Money Laundering Regulations 2017 achieve their policy aims, HM Treasury also seeks views on whether certain low risk sections of the gambling industry should be exempted from the new regime.

HM Treasury also proposes increasing to £100,000 the turnover threshold below which persons engaged in gambling or other money-handling activities “on a very limited or occasional basis” would also be exempted, saving them £200 per business administration costs.

The new regulations will also address concerns about unjustified and disproportionate withdrawal or potential restriction of financial services from domestic ’politically exposed persons’, their families and close associates.

In addition to the draft regulation and the consultation, ‘Money Laundering Regulations 2017’* links to a document setting out responses to the initial consultation in September, 2016.

‘Transposition of the Fourth Money Laundering Directive’ links to an impact assessment that, among  other data includes a detailed list of the types of money-handling businesses that will come under the regime.

Anti-Money Laundering Supervisory Watchdog

The updated anti money laundering regime will be strengthened and made more consistent and business-friendly by a new watchdog created by HM Treasury to control the 25 organisations – 22 of them professional bodies for accountancy and legal services providers – that act as supervisors.

Termed the Office for Professional Body Anti-Money Laundering Supervision (OPBAS) and based within the Financial Conduct Authority, it is scheduled to be operational by the beginning of 2018.

Its main role will be to determine how the supervisors should comply with the new regulations and it will have the power to penalise those which breach them.