New guidelines are being devised by Lithuanian authorities for the lottery and gambling sector to clarity what needs to be known about the customer and the business relationship. The aim is no doubt to curb money laundering and terrorist financing.
The guidelines fall within the purview of the Gambling Supervision Service, an entity that works under Lithuania’s Ministry of Finance.
The gambling sector has voiced a compliant against the country’s Law on the Prevention of Money Laundering and Terrorist Financing. Why? Last year a National Money Laundering and Terrorist Financing Risk Assessment accused the Gambling Supervisory Authority of failing to deal with the threat of money laundering in casinos.
They even identified the remote gambling sector as high risk. Now operators must assess the client, even out of the country. Identification is parament and the operator is obliged to confirm all registrations with an eye to possible danger.
This means that the source of funds must come from reliable independent data, including documents or information, such as public data registers.
In addition, per the guidelines, customers must be divided into risk groups (categories) according to various criteria.
They include the size, nature, extent of the monetary transactions performed. Also, the services purchased, previous suspicious transactions, efforts to present a non-identity document, and any related actions to avoid registration before conducting monetary transactions.
“The company should try to get as much information as possible
from the client. However, such information should be collected prudently and
efforts should be made to verify the information provided by the client.”
It is now mandated that all information provided by the client must be confidential and carefully protected in accordance with the law and the company’s procedures.