The Spillemyndigheden, Denmark’s Gambling Authority, has drawn attention to the Financial Action Task Force’s (FATF) updated list of high-risk jurisdictions. This move underscores the importance of anti-money laundering (AML) compliance within the gambling industry.
Safeguarding financial systems
Established in 1989, the FATF, also known as Groupe d’action financière (GAFI), was initially tasked with combating money laundering. In 2001, its mandate expanded to include addressing terrorism financing. To ensure global financial security, the FATF publishes updated lists of jurisdictions classified as either high-risk (greylist) or non-compliant (blacklist).
Lebanon joins the FATF greylist
The latest update saw Lebanon added to the FATF greylist, which includes jurisdictions under increased monitoring due to weaknesses in their AML and counter-financing of terrorism (CFT) frameworks. Greylisted countries are working towards compliance but require enhanced customer due diligence (EDD) checks by businesses, including gambling operators.
As of now, the greylist includes Algeria, Angola, Bulgaria, Burkina Faso, Cameroon, the Ivory Coast, Croatia, DR Congo, Haiti, Kenya, Lebanon, Mali, Monaco, Mozambique, Namibia, Nigeria, the Philippines, South Africa, South Sudan, Syria, Tanzania, Venezuela, Vietnam and Yemen.
Meanwhile, the blacklist includes countries like North Korea, Iran, and Myanmar, deemed unwilling to engage in global AML/CFT initiatives. Gambling operators are required to avoid dealings with blacklisted jurisdictions altogether.
Impact on gambling market
Spillemyndigheden’s alert comes as Denmark’s gambling industry records a nearly three percent decline in average spend. The drop could signal increased consumer caution amid rising regulatory requirements and awareness around financial crime.
Why enhanced due diligence matters
Enhanced customer due diligence is a critical tool in detecting and preventing financial crimes. It involves identifying customers from high-risk jurisdictions, closely monitoring transactions, and reporting suspicious activity.
By adhering to FATF recommendations, gambling operators can reduce exposure to risks and strengthen their reputation in a competitive market. For Danish operators, maintaining compliance aligns with Spillemyndigheden’s broader goal of fostering a secure and responsible gambling environment.
Join SiGMA Eurasia taking place in Dubai from 23 to 25 February 2025.
