- Supervision of casinos
- Conducting client research
- Reporting unusual transactions
- Applicable laws and regulations
Supervision of casinos
Supervision of casinos
The BES Prevention of Money Laundering and Terrorism Financing Act (Wet ter voorkoming van witwassen en financieren van terrorisme BES / Wwft BES) defines the service to which this act applies as ‘offering an opportunity to compete for prizes and premiums within the framework of the operation of games of chance, including in gambling casinos’.
De Nederlandsche Bank (DNB), the Dutch central bank, is charged with supervising compliance by casinos in the Caribbean Netherlands with the Wwft BES and secondary legislation based on it. These regulations incorporate international agreements in this sphere into national legislation. Of particular importance in this context are the Recommendations of the Financial Action Task Force (FATF). Click here for the FATF standards and for the activities performed by this organisation.
Under the Wwft BES, a gambling casino needs to fulfil a number of requirements, including:
• conducting client research
• reporting unusual transactions
Conducting client research
Casinos conduct client research in order to prevent involvement with laundering money and financing terrorism. Within this client research, the casino ensures that:
- the client is identified and that his or her identity is verified by means of suitable documents;
- any ultimately responsible party is identified, and that appropriate measures are taken to verify his or her identity;
- the purpose and the nature of the business relationship with the client is determined;
- the business relationship with the client and executed transactions are monitored as much as possible.
It is important that the casino has a clear picture of the risks associated with the client, the activities, the service and the transactions performed. To that end it prepares a risk profile, for instance, and keeps it up to date. The information for the risk profile is gathered while the business relationship with the client is maintained and while the transactions are performed for this client. Furthermore, where relevant, sources such as reports from the FATF in relation to high-risk jurisdictions are taken into consideration in the preparation of the client’s risk profile. More detailed client research is required if a heightened risk has been identified.
Reporting unusual transactions
Another major aspect of the Wwft BES is the obligation on casinos to report unusual transactions. The casino investigates transactions as to whether they may be unusual, to prevent the laundering of money. Whether a transaction is designated as unusual is decided on the basis of the indicator lists drafted on the basis of the Wwft BES. When a transaction fits an indicator, the casino must immediately report the transaction to the appropriate Dutch agency, the Financial Intelligence Unit (FIU Nederland).
It is important to note in this context that the casino and its employers have a legal duty not to disclose the fact that a report has been made. It is an offence to inform those involved in a reported transaction that a report has been made.