The fourth EU anti-money laundering directive : a challenge or an opportunity for the Maltese gaming industry?

Abstract

Money laundering represents ‘Organised crime…that threatens the safety and security of peoples, states and democratic institutions.’1 In the initial chapter, a description of the classical money laundering cycle serves as a backdrop to the mind-set of money launderers. This is followed by an appraisal of the direct and indirect impacts of this illicit activity. At a later stage, the discussion revolves around the typologies of money laundering via which criminals secure a viable gateway within the legitimate economy. The closing sub-section of Chapter 1 focuses on the vulnerabilities of the gaming sector to money laundering risks in order to ensure that these can be effectively addressed in real time. Chapter 2 initiates with the historical genesis of the EU AML/CFT Directives in curbing money laundering activities. An evaluation of the Maltese legal system, specifically regarding money laundering, is followed by a comprehensive assessment of the effectiveness of the Maltese gaming regime, reinforced by a system of inbuilt controls. The latter is spearheaded by the objective to militate against the potential injection of illicit gains within the gaming sector. Lastly, an evaluation of the role and contribution of policy-making, supervisory and enforcement bodies is carried out ensuring an objective framework. Chapter 3 focuses on the implications and the expected changes generated by the EU Fourth AML Directive. It presents a critical analysis of the merits and demerits in the application of this directive to the entire gaming industry. The crux of the argument focuses on the extent distinct areas of the Maltese gaming industry will be impacted by this regulatory shift. The final Chapter, while serving as a synthesis to this approach, will present a set of recommendations and proposals chartering the way forward. This research is practical in scope and serves as a gateway for future studies in this arena.