The prevention of money laundering procedures by online gaming companies in Malta : an assessment

Abstract

Purpose: The purpose of this study is to make an assessment of gaming operators’ attitudes towards the law, as well as a comparison of anti-money laundering procedures used by operators. The study also aims to analyse the regulatory perspective, by evaluating the position held by various public authorities. Design: The achievement of the research objectives of this study depended on a series of semi-structured interviews with gaming operators, as well as additional interviews with the Malta Gaming Authority, the Financial Intelligence Analysis Unit and a chosen external auditor. This was also complemented through the use of extant literature on the topic. Findings: The study showed that operators in Malta are very knowledgeable in terms of the relevant legislation, and anti-money laundering procedures are a priority within their operations. The authorities must continue to exercise their regulatory role in full force, in order to safeguard the industry in Malta. Conclusion: Even though most operators are well prepared for the introduction of the 4th EU Anti-Money Laundering Directive, there is still room for improvement, especially with regards to smaller companies. Operators and regulators must work together in order to retain Malta’s reputation as one of the top online gaming jurisdictions. Value: This study seeks to contribute to increasing awareness on the 4th Anti- Money Laundering Directive and its implications on the online gaming industry. Another point focused on is the importance of having comprehensive anti-money laundering procedures in order to safeguard the company.