The American Gaming Association (AGA) has recently unveiled the third edition of its Best Practices for Anti-Money Laundering (AML) Compliance guide. This updated resource, developed in collaboration with top compliance professionals, reinforces the gaming industry’s commitment to combat money laundering by incorporating new legislation, technological advancements, and emerging indicators of criminal activity. With the legalization of sports betting and iGaming in 16 states since the previous update in 2019, the AGA has expanded its focus areas to address evolving challenges, including cybercrimes, fraudulent activities, the Bank Secrecy Act, and the use of cryptocurrency and digital payments.
Enhanced Guidelines for AML Compliance:
The newly updated guide provides comprehensive guidance for gaming companies, covering various aspects of AML compliance. By incorporating the latest regulatory requirements, it equips gaming industry professionals with the necessary tools to safeguard the integrity of the US financial system. Noteworthy additions to the guidelines include:
Customer Due Diligence (CDD) and Know Your Customer (KYC) Processes: Building on the previous edition, the updated guidelines emphasize the importance of robust CDD and KYC procedures. These measures ensure that gaming companies have a thorough understanding of their customers’ identities, transaction patterns, and risk profiles.
Red Flag Indicators: The guide expands upon the red flag indicators, providing gaming industry professionals with a more comprehensive set of warning signs to identify potential money laundering activities. This heightened awareness assists in detecting suspicious transactions and promptly reporting them to the appropriate authorities.
Definitions and Terminology: In an effort to enhance clarity and consistency across the industry, the revised guide includes updated definitions and terminology related to AML compliance. This standardized language promotes effective communication and understanding among gaming industry stakeholders.
Commitment to Protect the Financial System:
Alex Costello, Vice President of Government Relations at AGA, expressed the gaming industry’s dedication to combatting financial crimes, acknowledging the evolving methods and sophistication of money laundering activities. By continually spearheading efforts to safeguard the US financial system, the gaming industry demonstrates its commitment to eliminating illicit finance. The Best Practices for AML Compliance guide serves as an invaluable resource for gaming companies, empowering them to proactively mitigate risks and contribute to a secure and transparent gaming environment.
Leadership in AML Compliance:
The gaming industry has been at the forefront of establishing comprehensive AML compliance standards. In 2014, it became the first sector to collectively introduce a set of best practices to combat money laundering. The industry’s proactive approach to AML compliance is further exemplified by the significant contribution of nearly 55,000 suspicious activity reports filed in 2021, aiding law enforcement agencies in identifying and prosecuting money laundering activities. The AGA’s active participation in the Bank Secrecy Act Advisory Group (BSAAG), organized by the Financial Crimes Enforcement Network (FinCEN), reinforces the gaming industry’s commitment to collaboration and knowledge-sharing in the fight against money laundering.
The American Gaming Association’s release of the updated Best Practices for AML Compliance guide underscores the gaming industry’s ongoing commitment to combat money laundering and protect the integrity of the US financial system. By incorporating new laws, emerging threats, and technological advancements, the gaming industry is well-equipped to proactively address evolving challenges. This comprehensive resource provides gaming professionals with the necessary guidance, red flag indicators, and standardized terminology to enhance AML compliance efforts. With its continued leadership in AML compliance and collaborative engagement with regulatory authorities, the gaming industry reaffirms its commitment to maintaining a transparent and secure gaming environment for all stakeholders.