Potential Loss of Anti-Money Laundering Authority by the UK Gambling Commission
The UK government has shared plans proposing the merging of all anti-money laundering (AML) responsibilities into a single entity within the country. There are four proposed designs, and the final choice could have an effect on the UK Gambling Commission (UKGC).
As recently as June 30th, the HM Treasury - a department of the UK government - revealed its intent on restructuring oversight for AML and Counter-Terrorist Financing (CTF) in the UK. The main focus here is in changing how business must meet AML requirements, rather than adjusting the requirements themselves. An additional review is planned to consider changing those requirements.
The UK's Treasury department has now introduced four possible options to be considered. Public comment will be welcome until the end of September.
Redesigning AML Supervision
According to the official documents, a single entity could possibly take charge of the UK's AML oversight. This body would be publicly funded but report directly to Parliament.
The proposal states that this single overseer offers multiple advantages over private organizations. It not only centralizes oversight, improves efficiency, and simplifies maintenance of responsibility if AML regulations change.
In adopting this strategy, HM Treasury performed a worldwide examination, investigating the AML regulatory systems of other G7 and G20 nations. They feel these nations have been applauded by Financial Action Task Force (FATF) and the UK wants to imitate their methods.
HM Treasury noted that none of the existing AML systems in the UK satisfy their criteria. Consequently, they claimed, a new system is the only solution.
The study found recurrent weaknesses in the UK's AML monitoring mechanisms linked to the nonfinancial sector. Additionally, it identified a dearth of effective enforcement measures by authorities to address these vulnerabilities in the income sector.
Four Proposed Scenarios
One model proposed would modify current regulations to give the Office for Professional Body Anti-Money Laundering Supervision (OPBAS) greater authority over supervising the UK's existing professional body supervisors (PBS). These bodies are currently the regulatory authorities.
Another model would see a few of the PBS regulators granted AML/CTF supervisory powers. HM Treasury may decide upon two or six such regulators, depending on the eventual makeup of the model - one might manage the whole of the UK, while six could oversee each of the UK's jurisdictions.
The third proposition suggests a singular supervisor in control of monitoring all legal and accountancy sector firms. HM Treasury pronounces that this body would probably be "an independent public body with extensive enforcement powers"
The fourth option proposes an entirely new supervisor responsible for all things AML. However, this plan poses issues as existing regulators, like the UKGC and the Financial Conduct Authority, would maintain their control over other functions, absent AML oversight. As a result, there could be misunderstanding over who's truly responsible for what.
The UKGC's stance on these four options is unknown. It may favor the idea of reducing its own obligations, but would also need to surrender its dominance over potential AML violations. Since that's a primary reason for huge fines, this option may not be favorably received.
Read also:
- BVB trails 1-0 against Paris, with Füllkrug leading them towards the final.
- Munich Drama: Late Real Penalty Leaves Bayern Shocked
- Lars is capable of leading BVB, according to many.
- Subsequent torrential rainfall leads to 48 fatalities due to partial highway collapse in China.
Source: www.casino.org
