Prerequisites for Entering into a Business Relationship
Before entering into a business relationship with their client or assisting them in preparing or executing a transaction, entities subject to the regulation must identify their client and, where applicable, the beneficial owner of the business relationship, using appropriate means, and verify their identification details upon presentation of any supporting written document.
They must also identify, under the same conditions, their occasional clients and, where applicable, the beneficial owner of the business relationship, as defined in this Regulation.
By way of derogation, where the risk of money laundering and terrorist financing appears low within the meaning of the regulation, verification of the client's identity and, where applicable, the beneficial owner's identity may be carried out only during the establishment of the business relationship.
The legal representatives and managing directors of gaming operators fulfil these obligations by implementing the measures set out in Article 28.
Duty of Ongoing Due Diligence Regarding the Business Relationship
Before entering into a business relationship with a client, the persons referred to in Articles 6 and 7 of the regulations shall collect and analyze the information, from among those listed for this purpose by a competent authority, necessary to understand their client, as well as the purpose and nature of the business relationship, in order to assess the risk of money laundering and terrorist financing.
Throughout the duration of the business relationship, these persons shall collect, update, and analyze the information, from among those listed for this purpose by a competent authority, that allows them to maintain an appropriate understanding of their client. The collection and retention of this information must be carried out in accordance with the objectives of assessing the risk of money laundering and terrorist financing, and of monitoring appropriate to this risk.
At any time, these individuals must be able to demonstrate to the supervisory authorities the adequacy of the due diligence measures they have implemented in relation to the money laundering and terrorist financing risks presented by the business relationship.
Ongoing due diligence is required on all customer transactions.
Persons referred to in Articles 6 and 7 of the regulations must exercise continuous vigilance regarding all business relationships and carefully examine transactions to ensure they are consistent with their knowledge of their clients, their business activities, their risk profile, and, where applicable, the source of their funds.
They are prohibited from holding anonymous accounts or accounts under fictitious names.
Obligation relating to AML/CFT prevention measures
Persons referred to in Articles 6 and 7 of the regulations must take specific and sufficient measures to prevent money laundering and the financing of terrorism and proliferation when they conduct business or carry out transactions with a client who is not physically present for identification purposes.
Obligation to Implement Risk Management Systems
The persons referred to in Articles 6 and 7 of the regulations are required to have adequate risk management systems in place to determine whether a client is a politically exposed person and, if so:
- To obtain authorization from senior management before entering into or continuing a business relationship with the client;
- To take all reasonable steps to identify the origin of funds or assets;
- To ensure enhanced and ongoing monitoring of the business relationship.
The procedures for implementing this obligation are specified by decision of the Ministerial Committee upon a proposal from GABAC in conjunction with COBAC, and any breaches found are punishable in accordance with the provisions of these regulations.