AramOrbelyan
“Concern-Dialog”LawFirm
Senior partner
Georgia Gaming Congress, 2015
Anti money laundering and
terrorism financing legislation
Internationalinstruments
Conventions
FATF recommendations
Others
National legislation
Laws
Secondary legislation
The Financial Action Task Force
(FATF) recommendation 22
The customer due diligence and record-keeping requirements set out inRecommendations 10, 11, 12, 15, and 17,apply to(a) Casinos – when customers engage infinancial transactions equal to or above theapplicable designated threshold.
The designated thresholds for transactions
under FATF recommendation 22
Casinos USD/EUR - 3,000
Financial transactions above a designatedthreshold include situations where the transactionis
• carried out in a single operation or
• in several operations that appear to be linked
FATF Recommendation 10
Casinos should implement Recommendation 10(customer due diligence (CDD)), including identifyingand verifying the identity of customers, when theircustomers engage in financial transactions equal to orabove USD/EUR 3,000.
Conducting customer identification at the entry to acasino could be, but is not necessarily, sufficient.
Countries must require casinos to ensure that theyare able to link customer due diligence information fora particular customer to the transactions that thecustomer conducts in the casino.
FATF Recommendation 11
All necessary record on transactions shall bemaintained for at least five years.
All records obtained through CDD measuresshall be kept for at least five years after thebusiness relationship is ended, or after the dateof the occasional transaction.
CDD measures
Risk assessment
Report
Maintenance of records
NATIONAL LEGISLATION AND
FATF RECOMMENDATION 22
Armenia
Georgia
Russia
Reporting (monitoring) entities
Armenia
• Entities organizing Lotteries
• Entities organizing casinos
• Entities, organizing games of chance, including over internet
Georgia
• Entities organizing lotteries
• Entities organizing gambling
• Entities organizing other commercial games
• Casino, including internet casino
Russia
• Entities organizing betting
• Entities organizing gambling
• Entities organizing game of chance and lotteries, including over the internet
Transactions
Armenia
• Purchase of chips (lottery tickets)
• Betting
• Providing or payment of the win
• Any financial transaction connected with abovementioned
Georgia
• transaction concluded or implemented by the person and/or
• the series of concluded or implemented transactions aimed at partition of the transaction (its amount) .
• an attempt to conclude or implement the transaction which, pursuant to written instructions of the FMS of Georgia, may be related to legalization of illicit income or funding of acts of terrorism.
Russia
• получение денежных средств в виде платы за участие в лотерее, тотализаторе (взаимном пари) и иных основанных на риске играх, в том числе в электронной форме
• выплата денежных средств в виде выигрыша, полученнего от участия в лотерее, тотализаторе (взаимном пари) и ином основанном на риске игре, в том числе в электронной форме
Subject to report (monitoring)
Armenia
• The transaction is suspicious
• The amount of non-cash transaction is equal to or exceeds 20 mln AMD
• The amount of transaction in cash is equal to or exceeds 5 mln AMD
Georgia
• The amount of the transaction or the series of transactions exceeds GEL 30,000 (or its equivalent in other currency) (cash//non-cash)
• The transaction is suspicious
Russia
• The amount of the transaction is equal or more than 600000 RUR or
• In foreign currency, equal or more than 600000 RUR when exchanged
Subject to identification
Armenia
• Identification is required for transactions equal to or equivalent to 1 mlnAMD
Georgia
• the amount of the transaction (operation) exceeds GEL 3000 (or its equivalent in another currency);
• The client aims to carry out domestic or/and cross-border wire transfers that exceeds GEL 1500 (or its equivalent in another currency);
• Doubts arise regarding the veracity or adequacy of previously obtained client identification data;
• The transaction is suspicious
Russia
• The amount of participation or the win from participation exceeds the amount of income, which is not subject to taxation under Tax Code of Russia
FATF Recommendation 28
Casino should be licensed
Competent authorities should take the necessary legal or regulatory measures to prevent criminals or their associates from holding, or being the beneficial owner of, a significant or controlling interest, holding a management function in, or being an operator of, a casino
Competent authorities should ensure that casinos are effectively supervised for compliance with AML/CFT requirements
Risk-based approach supervision
AML/CFT supervision or monitoring
General processAllocation of AML/CFT supervision resources
Specific process
National risk assessment (risks
present in the country)
Sectoral risk assessment (gambling
business)
Firm specific risk assessment (type of
business , customers, products and services
Risk-approach measures
Professional team
Effective internal rules
Real risk assesment
Minimization of risks
Legal mechanisms of risk management
Cooperation with authorized state bodies
FATF Recommendation 35
Countries should ensure that there is a
range of effective, proportionate and
dissuasive sanctions, whether criminal,
civil or administrative, available to deal
with natural or legal persons covered by
Recommendations 6, and 8 to 23, that fail
to comply with AML/CFT requirements.
Sanctions
• Administrative (warning, fine)
• Criminal liability (imprisonment)Armenia
• Criminal liability (fine or imprisonment)Georgia
• Administrative (отзыв (аннулирование) лицензии, предупреждение, штраф)
• Criminal (fine, improsionment)Russia
Thank You for Attention
QUESTIONS?