Gaming companies often had very rigorous anti-money laundering systems on paper, but they were not always being used effectively, an industry conference heard on Tuesday.  

Claudia Callus, the senior manager of the compliance section at the Financial Intelligence Analysis Unit, told a gaming conference that during onsite inspections most gaming companies surprised inspectors with how good their anti-money laundering systems were “on paper”. 

However, when it came to checking if these systems were being used, there was still “room for improvement”.  

Ms Callus told the conference that the number of suspicious transactions reported to the FIAU from local gaming companies last year had shot up, which showed that by-and-large, gaming companies were on board with a set of newly introduced reporting requirements. 

Tracy Cauchi, from the Malta Gaming Authority’s anti-money laundering office, told gaming executives that meetings with local operators in recent months had been a mixed bag.  

She said some of the money laundering reporting officers (MLROs) employed with local gaming companies had exceeded expectations. On the other hand, the MGA had also sat down with a number of MLROs, responsible for ensuring gaming companies did not facilitate criminal activity, who were not up to scratch. 

Number of suspicious transactions reported to FIAU from gaming companies shot up

“There were some who did lack the necessary competency to adequately fill the role of MLRO, and here we urge training,” she said, adding that the authority was willing to engage with companies to facilitate this.  

Ms Cauchi added that some in the sector seemed to believe that closing down a player’s account was enough when faced with a reasonable suspicion of money laundering.  

She urged those at the conference to flag any significant suspicious activity to the FIAU, as they were obliged to do.  

“Ultimately this isn’t for the authorities but for you. Reporting and flagging these issues helps mitigate the risk you face,” she said.  

Earlier during the conference, Digital Economy Parliamentary Secretary Silvio Schembri said the government was committed to turning Malta into “the ultimate jurisdiction”.