Money laundering in iGaming

Abstract

Criminals are continually trying to find new ways and means by which they can launder money that they acquire by illegal processes and transform this money into a legitimate source of funding. iGaming companies are victims of such attempts and so they have to make sure that they have the required regulation in place to counter such threats. iGaming companies face risks and challenges which can only be addressed by solutions and strategies along with staff training schemes. This dissertation seeks to find out the main risks and challenges that Maltese-registered iGaming companies are facing in this day and age, and also solutions and strategies that may be employed in response. Data was collected by means of interviews held with personnel from several iGaming companies registered in Malta and also from the Malta Gaming Authority, the responsible regulator. Both sets of interview questions consisted of open-ended questions. These interviews were held in person with the MLRO, Key Officials and with senior legal and compliance officers. This enabled the researcher to gather at first hand the relevant information. This took place in conjunction with the present researcher’s initial desk research. From the information obtained, it was concluded that the issue of ‘front people’ was the most common and severe risk. Criminal innovation also emerged as a problematic challenge. However, the general risk of money laundering in relation to iGaming companies was very low. This research also found that the MGA did its utmost to counter the threat of money laundering. However, amendments and improvements need to be made when considering solutions and strategies. Among other recommendations, the present researcher is of the view that there is room for improvement and change in the local set-up. Recommendations also concern the iGaming companies’ challenges, risks and solutions with regards to money laundering. Further recommendations relate to training provision and MGA procedures that would consolidate even further Malta’s reputation in the iGaming industry.