Preventing money laundering and fraud in gaming : an analysis of the regulation

Abstract

This term paper will focus on the prevention of money laundering and fraud in the gaming industry. Its focal point is the implementing procedures and analysis of the Regulations; Prevention Money Laundering Act and Prevention of Money Laundering and Funding of Terrorism Regulations, which have been implemented into Maltese law in order to comply with the Directives issued by the European Union. Thus, we will also be analytically studying such EU Directives so that we can have a legal source background on such criminal activity, which will in turn help us understand the purpose and intention behind such Regulations. Furthermore, this paper delves into the Maltese institutions, such as the Malta Gaming Authority and the Financial Intelligence Analysis Unit, which were established to help regulate the gaming industry. It defines what they are, their roles, and obligations. The MGA was established in order to regulate all forms of gaming in Malta and thus, establishes the regulatory authority. Whilst, the FIAU was established under the PMLA in order to collect, process, and analyse information with the purpose of preventing money laundering and the funding of terrorism. Another main section of this term paper is the compliance of the gaming companies in Malta. We will analyse the essential requirements and measures that such companies have to implement into their systems, in order to comply with the Regulations. Furthermore, such implementing measures will be seen in relation to online gambling, as well as land-based casinos. Thus, having a comparative view on the different implementing procedures.