Why Sports and Racing Betting Need AML/CTF?
Sports and Racing Betting operators act on behalf of their clients, engaging in activities of placing a bet on the outcome and putting money on a horse. As a business of betting or wagering, you need to put anti-money laundering/counter-terrorism financing (AML/CFT) measures in place if you engage in the following activities on behalf of a client:
- act on behalf of your client to place bets through a bookmaker or sportsbook, or
- carry out cash transactions above a specified threshold; or
- conduct off-track betting on horse races or greyhound racing events; or
- provide accounts to customers for betting, including mobile wallets, for storing money.
In certain jurisdictions, if you have gross annual revenues greater than a stated amount, you may be deemed as “financial institutions”. For instance, the Bank Secrecy Act (USA) makes businesses grossing over US$1 million a regulated entity, while Austrac requires Identity Verification (IDV) and reporting for payouts over AU$10,000.
Sports and racing betting activities, including betting in race circuits, are cash-intensive and involve huge monetary transactions. Complex transactions can camouflage the illegal sources of the cash through layering. The speed of cash flying through gambling operations allows the proceeds of illicit funds to be laundered easily. The ability to receive cash from associates and to pool together funds from multiple sources, exchange money, store money in betting accounts for a period before cashing out, “messenger betting” or placing “cash-out bets” are practices that expose them to risks of money laundering and terrorism financing (ML/TF).
All betting and gambling businesses, including sportsbooks and tech-driven betting platforms, must begin by registering with your regulatory authority. Further, you must demonstrate a strong culture of compliance by reporting physical cash receipts or transactions above the prescribed amount, despite any deemed betrayal of client trust. Extensive customer vetting is required, including KYC and IDV, client due diligence, monitoring, record keeping, and reporting of out-of-state bettor transactions, especially involving foreign currencies, transactions with cryptocurrency exchanges, or sanctioned entities or countries.
The ability to use the betting platforms to store or transfer illegal cash, manipulate transactions and conceal any unlawful activity, allows clients to conceal illicit gains and avoid statutory laws. This exposes the betting businesses to ML/TF by being facilitators or acting on behalf of their client. Conflict of interest, lack of legalisation and regulations in “live betting”, the fear of losing business in the race to attract a wider pool of bettors, are the biggest gaps in compliance in the sports and race betting sector.
Betting and racing businesses are expected to build the framework for a risk-based compliance program:
- Conduct a risk-based assessment for exposure by type of client, the country in which the client operates, the nature and size of activities and transactions, and client relationships.
- Create risk reduction measures and controls to lessen risk.
- Develop an AML/CTF program: onboarding client identification, pretransaction screening and information gathering for vetting, review of beneficial ownership, third-party involvement in betting processes, ongoing monitoring and reporting as per the laws.
- Implement the risk-based approach to ongoing monitoring of customer, transactions and business relationships.
Set up and maintain your compliance program, as per the laws of your regulatory body. Non-compliance may result in criminal or administrative monetary penalties.
Ongoing compliance involves:
- Vetting when employing staff, training staff about the risks involved and keeping them up-to-date with AML/CTF rules, and nominating a compliance officer.
- Conducting enhanced due diligence (EDD) at the time of onboarding for cash-out/ cash-in bets, an extension of credits, large cash transactions, or when there are complex transactions.
- Ongoing transaction monitoring for suspicious activities, international operations, or deals with sanctioned individuals or countries, or when large transactions have minimal betting activity.
- Capturing customer data across every touchpoint and maintaining the records.
- Reporting obligations of Suspicious Transactions Reports (STRs) and Currency Transaction Reports (CTRs) for certain transaction thresholds, as mandated.
- Reviewing your risk assessments and compliance programme periodically with independent audits.
Our PEP and sanction screening service will help you reach your compliance requirements.
Our details scan reports provide you with an overview of in-depth information on potential risks to your organisation.
We provide access to multiple data sources to meet the varying requirements of users.
We update the information for all of our data sources daily to provide you with up-to-date relevant data.
Save the time manually checking names by using our batch scanning feature to scan bulk files of names simultaneously
Our service is straight-forward and easy use, making compliance easy by simplifying processes.
Perform due diligence by assigning risk, determining true matches and recording decisions in the NameScan dashboard.
Conduct further research into potential matches and risks to your organisation through various sources.
Use our API to integrate with your existing systems to automate the screening process.
Good, easy to use, gets it done
There are pros and cons to automated, comprehensive, fully-integrated systems. But for our workflow, we like that no integrations are required and we can use it as a standalone platform for running AML/PEP checks.
Top Level AML Solutions tailored to specific needs
Provides excellent value for money, is easy to use, accessible, and can be tailored for specific needs.
Detailed PEP/SIP Scanning with easy integration
Integration was easy with well-documented API. Both 'in house' and 'commercial' databases were detailed and provided valuable insights. The team are always accessible to provide support.
Making Life Much Easier
Been using this system for while now and really love the way that we get detailed response on every search that we conduct in matter of few seconds.
User-friendly and detailed report. Seems to be the best product on the market Industry.
Using the API for a year without any major issues
Namescan API is well documented and easy to implement. We have been making calls to the API for almost a year now and there was only one instance when the call failed.
Corporate clients due-diligence
I highly recommend NameScan as it gives a detailed check on the required individuals and entities.
NameScan helps us understand our risk
NameScan is preventing us from writing a risk for an individual or entity that my have serious liability issues. I have no issues with the software itself.
Company Secretarial Services
Perfect for our needs
Quick and easy to run checks against a wide range of sanctions and PEP lists.
Best option out there for what we need
The simplicity and quality of the reports! Our clients have commented on how good it is to have all the scanned lists in one place.
Value for money
Very positive experience particularly in obtaining valuable and timely information on subject individuals.
Pretty good platform
Easy to use and get up and running on quickly.
Chief Compliance Officer
Pleasantly Surprised with the service
I was pleasantly surprised with the service, the results received on my test scan were very insightful and I can see where this can be a very useful part of any firm's AML program.
Happy about our experience
NameScan is extremely easy to use and highly intuitive.
Makes our life easier to check clients and suppliers
As an international Trading and distribution company we rely on good data about our potential clients and suppliers. When looking for an AML/CTF vendor we found NameScan, I personally like it because it makes our life easier to check clients or suppliers in our industry which is full of fraudsters. NameScan gives me the security I need when transacting. Great idea, well done, best web development for a long time.
Simple and easy to use interface
Simple and easy to use interface. What more can you ask for to help satisfy Client Due Diligence requirements.
Your services exceeded my expectations
My first impression of your services exceeded my expectations because it provides clear and exact information which nowadays is difficult to find namely in considered credible sources. As part of constant improvement in achieving the credibility of the global financial system in general, your company is already one step ahead in providing the high valuable credible information and gaining trust from serious free from global elite influence person like me. It´s a perfect example of how independent non-governamental companies can do excellent work and achieve excellence based on high standards of integrity and bold core values, wisdom and vision for a brighter future.
Easy to use service
Easy to use and to sign up, contains user friendly outputs.
I like how the search is narrowed. It is sensitive to include full names and also first and last name (unlike other providers I tested too). Well done.
Great user experience
Great experience! It is a user-friendly interface. The dedicated team responds quickly and efficiently to any question we may have.
Excellent Service body
Excellent service who considers startups low scan volume needs. User friendly dashboard.
Quality and Comprehensive service
NameScan provides our business with a quality and comprehensive service.
Intuitive AML screening software
Great easy to navigate and AML screening software. No fluff, no frills, straight to the point.
Excellent choice for small fintech start-ups
Namescan is an excellent choice for small fintech start-ups, where paying the large up-front signup fee of other AML solution providers can be less interesting.
Chief Compliance Officer
Easy to use and comprehensive
Easy to use and comprehensive. I recommend.
User Friendly Interface
NameScan has a very user friendly interface.
Highly recommend it
Its an effective tool, user-friendly and provides a comprehensive reports. Highly recommend it.
Easy to use and convenient
NameScan's service is easy to use and convenient.
Simple and Intuitive
Simple and intuitive to use with actionable insights and reassuring.
Simple and convenient
This one is very convenient for us.
Easy and quick
It’s easy to use and quick with results.