Good Practice Betaalinstellingen Gambling & Gaming

Disclaimer
This good practices document provides non-binding recommendations on the application of the Financial Supervision Act (Wet op het financieel toezicht – Wft) and the Anti-Money Laundering and Anti-Terrorist Financing Act (Wet ter voorkoming van witwassen en financieren van terrorisme – Wwft) to payment institutions serving merchants in the gambling and gaming sector. It sets out our expectations regarding observed or expected behaviour in policy practice that reflects an appropriate application of the rules to which this good practices document pertains. We encourage payment institution serving merchants in the gambling and gaming sector to take our expectations into account in their considerations and decision-making, without being obliged to do so, while also taking into consideration their own specific circumstances. The good practices document is only indicative in nature, and therefore does not alter the fact that some payment institutions should apply the underlying regulations differently, and possibly more strictly. It is the institutions’ responsibility to take this into account.

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Thematic examination into gambling and gaming – good practices Payment Institutions Introduction With this good practices document, De Nederlandsche Bank N.V. (DNB) aims to provide payment institutions1 with guidance on how to manage risks related to the provision of services to remote gambling providers (online gambling websites)2 and providers of online gaming websites, collectively referred to below as the gambling and gaming sector. In 2021, we conducted a thematic examination into payment institutions offering payment services to merchants in the gambling and gaming sector. We selected nine payment institutions that serve merchants operating in the gaming and/or gambling sector for the examination. In particular, we focused on the controls payment institutions had implemented with regard to their service provision to merchants in the gambling and gaming sector. Subsequently, several payment institutions were selected for a desk-based, in-depth investigation. Risk management always requires customisation. This also applies to the risks associated with gambling and gaming. The examples presented in this good practices document will often, but not always, be directly applicable to every single institution. 1 This good practices document could also be relevant for other payment service providers. 2 From 1 October 2021, a provider of online gambling is required to apply for an operating licence under Section 31a of the Betting and Gaming Act. A licensed provider is supervised by the Kansspelautoriteit. Relevant laws and regulations Among other requirements, payment institutions must comply with the following statutory obligations to mitigate money laundering and terrorist financing risks. This good practices document provides non-binding suggestions for meeting these obligations.

• Sound and ethical operational management
  (Section 3:10 read in conjunction with Section 3:17 of the Financial Supervision Act (Wet op het financieel toezicht – Wft) and with Sections 10 and 17 of the Decree on Prudential Rules for Financial Undertakings (Besluit prudentiële regels Wft - Bpr);
• Measures to identify and assess money
  laundering and terrorist financing risks through the SIRA (Section 2b of the Anti-Money Laundering and Anti-Terrorist Financing Act (Wet ter voorkoming van witwassen en financieren van terrorisme – Wwft)
• Policies, procedures and measures to minimise
  and effectively manage the risks of money laundering and terrorist financing, as well as the risks identified in the most recent versions of the supranational and national risk assessments (SNRA and NRA) (Section 2c of the Wwft)
• Customer due diligence (Sections 3, 8 and 9 of
  the Wwft)
• Transaction monitoring (Sections 2a and 3(2),
  opening words and under d, of the Wwft
• Reporting unusual transactions (Section 16 of
  the Wwft)

4 Introduction 3
Integrity risks in the gambling and gaming sector 5 Gambling and gaming risks for payment institutions 7 Policy and customer due diligence 9 Transaction monitoring 10 Contents

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Thematic examination into gambling and gaming – good practices Payment Institutions We provide guidance on customer due diligence in our English-language publication in our Guideline on the Anti-Money Laundering and Anti-Terrorist Financing Act and the Sanctions Act.

• Transaction checks (pay-in/pay-out) for illegal gambling. This may include blocking transactions from
  the payer and transactions to the payee in jurisdictions where merchants are not licensed for gambling activities or where these services are prohibited.