The fight against money laundering and its effects on corporate service providers and gaming companies

Abstract

The purpose of this dissertation is to evaluate the challenges that Corporate Service Providers (CSPs) and Gaming Companies tackle in terms of money laundering. It will examine the challenges that banks confront, as well as the reasons why CSPs and Gaming Companies are having trouble opening bank accounts. This research study focuses on reviewing previously published literature to explain the context of how money gets laundered into the financial system. The challenges, risks, and procedures that these two industries must combat on a daily basis, will also be delved into. The research method adopted for this study is a qualitative approach that includes semi-structured interviews with professionals in the aml sector. This strategy has provided the dissertation with crucial, honest, and accurate information on the problems they are having with money laundering that could not have been obtained through any other means. Various results were reached as a result of this research. Although Corporate Service Providers and Gaming Companies come from two completely different industries, they share a common challenge that makes it difficult for them to conduct business in a timely manner and, in some cases, causes them to lose clients who prefer to do business in other foreign jurisdictions. This is the process of opening a bank account. Since the new legislations and Implementing Procedures (PMLFTRs) were issued, all three individuals interviewed acknowledged that this has been a challenge. Furthermore, the MoneyVal report and grey-listing did not make matters any easier, as it led to Correspondent banks to close relationships with various local banks or increasing the risk of Maltese banks, resulting in the de-risking of their clients, and unfortunately, gaming companies and Corporate Service Providers are both regarded as high risk for the banking sector. causing a number of clients in these two industries to lose their bank accounts.