The General Inspector of Financial Information hereby announces that in 2019 he implemented the project “Harmonising the rules of the functioning of entities in the scope of games of chance, betting, card games and games on gaming machines in terms of counteracting money laundering and financing of terrorism”.

With reference to the implemented project the General Inspector hereby reminds you that the Act of 1 March 2018 on counteracting money laundering and financing of terrorism entered into force on 13 July 2018. Pursuant to Article 2(1)(20) of the AML/CFT Act every entity pursuing activities in the scope of games of chance, betting, card games and games on gaming machines [2], within the meaning of the Act of 19 November 2009 – Gambling Law, is an obligated institution. This means that it is obliged to fulfil numerous requirements imposed in the AML/CFT Act. It must be emphasized that becoming an obligated institution by an entity providing gambling games takes place pursuant to provisions of the AML/CFT Act - any other notification is not required. Furthermore, an entity providing gambling games obtains a status of the obligated institution  irrespective of the legal form of economic activity conducted.

In the light of the provisions of the Act of 19 November 2009 gambling games are, inter alia:

• number games – the games where the prize is won by selecting correct numbers, signs or other marks and where the prize level depends on the total stakes paid;
• cash lotteries where participation is conditional upon purchasing a lottery coupon or other game ticket and where the entity organising the lottery offers cash prizes only;
• raffle lotteries where participation is conditional upon purchasing a lottery coupon or other game ticket and where the entity organising the lottery offers material prizes only;
• promotion lotteries where participation is conditional upon purchasing goods, services or other game ticket, whereby participation in the lottery is free and where the entity organising the game offers cash or material prizes;
• games on gaming machines that are played with the use of mechanical, electromechanical or electronic devices, including computer hardware and games corresponding to the rules of games on gaming machines arranged via Internet for commercial purposes, in which a player has no possibility to win cash or material prizes but the game has features of a chance;
• black jack, poker and baccarat, as long as they are played in order to win cash or material prizes.

An entity arranging gambling games which fails to fulfil statutory obligations shall be subject to administrative penalty. Administrative penalties include:

• publication of information on the scope of violation of the provisions of the AML/CFT Act;
• the order to cease undertaking specific activities by the obligated institution;
• revocation of a license or a permit, or deleting from the register of regulated activity;
• prohibition to hold a managerial position by a person responsible for the violation of the provisions of the AML/CFT Act;
• financial penalty up to the level of two-fold amount of the benefit gained or the loss avoided by the obligated institution as a result of the violation or - in the case where determining of such amount of this benefit or loss is impossible - up to the amount equivalent to EUR 1,000,000.

Obligations of an entity arranging gambling games (as an obligated institution) have been specified in, inter alia:

• Chapter 4 entitled “National assessment of the risk of money laundering and financing of terrorism and assessment of the risk of obligated institutions”;
• Chapter 5 entitled “Customer due diligence measures and other obligations of the obligated institutions”;
• Chapter 7 entitled “Information submission and collecting”;
• Chapter 8 entitled “Transaction suspension and account blocking”.

Consequences of failure to fulfil statutory obligations are described in Chapter 13 of the AML/CFT Act entitled “Administrative Penalties”. Explanation of the most important terms in the AML/CFT Act (for example, beneficial owner, customer, business relationship, occasional transaction) has been provided in Article 2(2) of the AML/CFT Act.

Obligations related to counteracting money laundering and financing of terrorism may be divided into the categories presented below. 

Appointment of persons responsible for the performance of statutory obligations.

An entity arranging gambling games should appoint, inter alia:

• senior management members responsible for the performance of the obligations defined in the AML/CFT Act;
• persons responsible for ensuring the compliance of activity of the obligated institution and its employees and other persons performing activities for this obligated institution with the provisions of the AML/CFT Act.

Obligations in this respect have been defined in Article 6, 7 and 8 of the AML/CFT Act.

Preparing the risk assessment.

An entity arranging gambling games is obliged to identify and assess the risk of money laundering and financing of terrorism referring to its activity, taking into account, in particular, factors related to, inter alia:

• customers;
• states or geographical area;
• products, services and methods of their distribution.

Obligations related to preparing the risk assessment have been described in Article 27 and 28 of the AML/CFT Act. While assessing the risk an entity arranging gambling games may take into account the binding national risk assessment. The national risk assessment can be found at: https://www.gov.pl/web/finanse/krajowa-ocena-ryzyka-prania-pieniedzy-oraz-finansowania-terroryzmu

Identifying the risk of money laundering and financing of terrorism

 

Pursuant to Article 33(3) of the AML/CFT Act an entity arranging gambling games is obliged to identify the risk of money laundering and financing of terrorism associated with the business relationship or with an occasional transaction taking into account, in particular, factors related to:

• type of customer;
• type of products, services and methods of their distribution;
• value of transactions performed;
• objective, regularity or duration of business relationship.

Application of customer due diligence measures.

An entity arranging gambling games is obliged to apply customer due diligence measures towards their customers. Customer due diligence measures should be applied, inter alia, in the event of:

• establishing business relationships;
• performing an occasional transaction:
• betting a stake and collecting prizes with the value equivalent to EUR 2,000 or higher (irrespective of whether the transaction is conducted as a single operation or as several operations which seem to be linked);
• suspicion of money laundering or financing of terrorism;
• doubts regarding the authenticity or completeness of customer identification data obtained so far.

Customer due diligence measures (the application of which should be documented) include, inter alia:

• identification of a customer and verification of its identity;
• identification of a beneficial owner and undertaking justified measures in order to verify its identity;
• assessment of business relationship and, as applicable, obtaining information concerning its objective and intended nature;
• ongoing monitoring of customer’s business relationship.

Detailed rules for the application of customer due diligence measures are covered by Articles 33-49 of the AML/CFT Act.

Internal procedure on counteracting money laundering and financing of terrorism.

An entity arranging gambling games is obliged to have an internal procedure on counteracting money laundering and financing of terrorism. The procedure (which should take into account the nature, type and extent of the activity conducted) should define, inter alia:

• activities or measures undertaken in order to mitigate the risk of money laundering and financing of terrorism;
• rules of application of the customer due diligence measures;
• rules related to keeping documents and information;
• rules of internal control or oversight of compliance of an obligated institution’s activity with the provisions of the AML/CFT Act.

Detailed information concerning the internal procedure and a group procedure is stipulated in Article 50 and 51 of the AML/CFT Act.

 

Trainings in the fulfilment of obligations related to counteracting money laundering and financing of terrorism.

Pursuant to Article 52 (1-3) of the AML/CFT Act an entity arranging gambling games is obliged to ensure the participation of employees fulfilling the obligations associated with counteracting money laundering and financing of terrorism in training programmes related to the performance of those obligations. It should be recalled that on the website https://kursy.tomorrow.pro/login/index.php  the General Inspector provided an e-learning course entitled “Counteracting money laundering and financing of terrorism”. More information on the course can be found in the General Inspector’s communication available at https://www.gov.pl/web/finanse/komunikat-giif-w-sprawie-udostepnienia-kursu-e-learningowego-przeciwdzialanie-praniu-pieniedzy-i-finansowaniu-terroryzmu

 

Internal procedure of anonymous reporting of infringements of the provisions.

In the light of Article 53 (1-2) of the AML/CFT Act an entity arranging gambling games is obliged to develop and implement an internal procedure of anonymous reporting of real or potential infringements of the provisions in the scope of counteracting money laundering and financing of terrorism. The said procedure should define inter alia:

• person responsible for receiving the reports;
• method of receiving the reports;
• method of protecting whistle-blowers.

Information submission and collecting

An entity arranging gambling games is obliged to provide the General Inspector with information on accepted payment or executed disbursement of funds exceeding the equivalent of EUR 15,000. Furthermore, on request of the General Inspector, it is obliged to immediately submit or make available any information or documents held, required for the implementation of the General Inspector’s tasks defined in the Act, including those referring to:

• customers;
• transactions performed;
• application of customer due diligence measures;
• IP addresses from which the connection with the ICT system took place.

Detailed information for the above-mentioned obligations is stipulated in Article 72 and 76 of the AML/CFT Act.

Notifications.

An entity arranging gambling games is obliged, inter alia, to notify the General Inspector of:

• circumstances which may indicate the suspicion of committing the crime of money laundering or financing of terrorism;
• any case of acquiring justified suspicion that the specific transaction or specific assets may be associated with money laundering or financing of terrorism.

Detailed information concerning the above-mentioned obligations is stipulated in Articles 74-92 of the AML/CFT Act.

 

Many obligations related to counteracting money laundering and financing of terrorism have been stipulated in the AML/CFT Act. In connection with this, the General Inspector of Financial Information encourages the entities conducting activity in the scope of games of chance, betting, card games and games on gaming machines to acquaint themselves with the binding provisions and to follow communications issued by the General Inspector.