EGBA Welcomes European AML Authority’s Frankfurt Base Decision

Strengthening Anti-Money Laundering Measures: EGBA Applauds Frankfurt as AML Authority Base

The European Gaming and Betting Association (EGBA) has embraced a pivotal decision by the European Council to designate Frankfurt as the headquarters for the new European Anti-Money Laundering Authority (AMLA). This strategic move marks a significant milestone in the European Union’s efforts to combat financial crimes and streamline anti-money laundering (AML) regulations across member states. As a seasoned gambling professional, I’ll delve into the implications of this decision and its potential impact on the gambling sector.

The establishment of AMLA’s base in Frankfurt signifies a proactive approach by European authorities to centralise AML supervision and enforcement. With plans to commence operations in the coming year and a dedicated workforce of approximately 400 professionals, AMLA aims to oversee AML activities directly and indirectly at various EU entities, including prominent financial institutions. The primary objective is to standardise AML regulations and practices across EU member states, promoting consistency and efficacy in combating illicit financial activities. As part of this initiative, AMLA will develop a uniform reporting template for Suspicious Transaction Reports (STRs), a crucial step towards enhancing transparency and accountability in the gambling sector and beyond.

Dr. Ekaterina Hartmann, Director of Legal and Regulatory Affairs at EGBA, expressed enthusiasm for Frankfurt’s selection as AMLA’s headquarters. Recognising Frankfurt’s status as a leading financial hub in Europe, Hartmann emphasised the logical choice of the city for housing the AML Authority. Moreover, she underscored EGBA’s commitment to collaborating with AMLA to advocate for the gambling sector and contribute positively to AML discussions at the EU level. The standardisation of STRs, Hartmann noted, will offer significant advantages to gambling operators, particularly those operating across multiple jurisdictions. By adhering to EGBA’s AML guidelines, operators can proactively align with forthcoming EU AML regulations, bolstering industry-wide compliance and elevating standards.

In a separate development, EGBA recently released its Annual Activity Report for 2023, offering insights into the gambling industry landscape. Despite a 9% year-on-year decline in Gross Gaming Revenue (GGR) to €10.7 billion, online casino revenue surpassed sports betting revenue for the first time, accounting for 48% of members’ revenues. Notably, the number of bets increased by 19%, reaching 132 billion, although the average stakes decreased by 9% to €184 billion. EGBA’s report highlighted its focus on AML initiatives, including the introduction of industry guidelines on due diligence, reporting, and record-keeping. Additionally, cybersecurity emerged as a priority area, with EGBA facilitating collaborative efforts among operators to address cyber threats through knowledge sharing and best practices dissemination.

In conclusion, EGBA’s endorsement of Frankfurt as the AML Authority base underscores the importance of cohesive efforts in combating financial crimes within the European gaming industry and beyond. By fostering collaboration, standardisation, and proactive compliance measures, stakeholders can collectively enhance the integrity and security of the gambling sector, safeguarding against illicit activities and promoting responsible gaming practices.