SOUTH AFRICA Law and Practice Contributed by: Wayne Lurie, Lurie Inc
easily accessible form of counselling is on the cards for the future. Limiting Mechanisms Though not universally required by law, some RG practices are effectively mandated by policy. For example, ATMs are often banned or limited on casino floors to discourage impulsive withdrawals; casinos and route operators enforce limits on LPM stakes and payouts by law. Also, offering credit to gamblers is prohibited, forcing a “cash only” rule to help prevent players from easily getting overextended. SAROGA has stated that its roadmap includes a voluntary and universal payment limitation API accessible to partici- Given the rise in online betting, regulators are now emphasising RG in the digital context ensuring online sites have easy-to-use self-exclusion and limit-setting features. 7.2 Gambling Management Tools pating operators. Emerging Focus As mentioned in 7.1 RG Requirements , the area is rather static; however, as with many things, the indus- try has recognised the need for a strong focus on self-regulation and has formed SAROGA to look at updated and universal digital tools to contribute to managing gambling as a form of entertainment. 8. Anti-Money Laundering (AML) 8.1 AML Legislation AML is the subject of a separate national statute being the Financial Intelligence Centre Act, No 38 of 2001. The structure and provisions of FICA are in line with the international Financial Action Task Force (FATF) guide- lines, and a strict degree of compliance is expected of gambling licensees in line with a schedule specifically applicable to gambling institutions. The relevant regulator via which an operator holds its licence is expected to act as the “supervisory body” in ensuring compliance with FICA by operators.
Enforcement and fines for non-compliance are strictly and actively applied. 8.2 AML Requirements AML requirements are stipulated in FICA but primarily surround the following. • Customer identification (KYC) – gambling institu- tions must know their customers. This means verifying a customer’s full name, date of birth, ID/ passport number, and address against reliable documents. • A risk-based approach – under FICA’s current framework, casinos and bookmakers must apply a risk-based approach. They should have risk rat- ing criteria for different customers. For instance, a VIP high-roller from abroad may be seen as higher risk, whereas a small-stakes local punter might be standard risk with simplified checks. • Record-keeping – all records of transactions and identification must be kept for at least five years. • Reporting obligations – key reports to the Financial Intelligence Centre (FIC) include cash threshold reports, suspicious transaction reports, and terror- ist property reports. They also have to screen cus- tomers against UN sanctions lists; the FIC sends updates on sanctioned entities and the gambling sector must ensure no dealings with listed persons. • Internal controls (RMCP) – every gambling operator must develop a Risk Management and Compliance Programme (RMCP). This internal policy document outlines how the business complies with FICA – covering customer due diligence processes, how staff are trained, how records are kept, and steps for each obligation. It must be tailored to the busi- ness’s risk profile. • Training and compliance officer – a FICA compli- ance officer is appointed at each institution to oversee AML processes. All relevant staff receive ongoing training to recognise suspicious behav- iours and to execute KYC properly. • Enforcement and audits – the FIC and provincial boards conduct inspections. With increased scru- tiny, more audits are happening. Non-compliance can result in administrative sanctions like fines or directives to correct, and in severe cases criminal charges (though usually regulators aim to enforce administratively first).
442 CHAMBERS.COM
Powered by FlippingBook