In this whitepaper, we discuss the implementation of the fifth anti-money laundering directive (5MLD) and the risk of subordination for the gaming and gambling sector of the UK. To comply with the new regulations most casinos must be very careful with whom they hire. However, organisations operating in this sector are still unclear on how to achieve maximum compliance with the 5MLD. Partnering with a third-party screening service provider like Giant can help companies stay compliant with the regulations while managing other core business activities.
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The fifth anti-money laundering directive came into force in January 2020. The gaming and gambling sector of the UK is the first among all highly regulated sectors when it comes to fifth anti-money laundering directive (5MLD) implementation. According to the research conducted by LexisNexis Risk Solutions, these sectors are 66% of the way through the implementation programme.
However, almost 43% of UK firms predict a regulatory restriction on 5MLD is coming soon. With this clampdown, firms will need to be extra careful to avoid the implications of non-compliance. Compliance comes with extra cost for the gaming and gambling sector, with firms are expected to make an investment of over 1 million pounds to become fully compliant.
With the current regulations in place, casino owners need to be aware of who they hire. Only conducting the basic background checks or ignoring the checks altogether can be a serious risk for the firms. This can lead to non-compliance with laws in place and result in heavy fines and reputational damage for the business.
Today’s employers have worked hard to establish a new legitimacy in their industry and to guard themselves against any cases of improprieties, it is mandatory to conduct background checks. Moreover, to comply with new regulations, most casinos must at least state their intent to thoroughly check each potential employee.
A professional background check for casino workers must include an applicant’s criminal record, driving record, employment history, medical records, credit history, educational background, and reference checks all going back 8 to 10 years, as well as a drug test. This will ensure the business stays compliant throughout. For gaming and gambling businesses aiming at long term compliance, they can conduct ongoing background checks on their employees.
Moving forward, research shows that the gaming and gambling sector can expect further regulation, with 78% of UK firms anticipating this as a result of the UK leaving the EU.
Organisations in the gaming and gambling sector are still unclear on how to achieve maximum compliance with 5MLD. Firms have sent out clear message to the regulators that they need more guidance on the new directive. Approximately 83% of the professionals are asking for better
assistance on how to make their AML programmes more effective, ultimately help them ensure compliance with the new regulations.
A third-party service provider can help your business protect against the threat of non-compliance through robust screening practices allowing you the freedom to focus on your core activities.
As the fastest growing screening company in the UK, Giant Screening understands the high risk of insubordination. With our market leading screening technology and exceptional service levels, Giant can effectively and consistently onboard your candidates, mitigating the risk of bad hires whilst keeping you complaint in the face of changing regulation.
Our global screening reach and power can help ensure a consistent approach to screening, please get in touch to arrange a free demo of our service or speak to one of our experts.
About Giant
For almost 30 years, Giant have provided specialist, end to end workforce management software and support services for organisations of all sizes. Globally.
When it comes to screening and onboarding your workers, you need a fast and flexible solution, so you don’t lose talent, this is why companies outsource to Giant. We are passionate about your worker’s journey and so provide the technology and industry knowledge you need to bring them on board efficiently and compliantly.
We know one size doesn’t fit all, so we tailor our system and processes to match your individual requirements.
You can relax knowing your data is safe with us. Our commitment to compliance protects your business from risk and our rigorous international security standard ISO 27001 ensures that your data is GDPR secure.
