New rules announced in June 2015 require online gambling companies to take steps to prevent money laundering through their products. Simpleweb portfolio company, W2 Global Data – who provide SaaS services for due diligence background checks – are opening up their products to online gambling companies to help them deal with the changes.

The Fourth Anti-Money Laundering Directive (4AMLD) – a set of rules for banks, auditors, accountants and other financial institutions in the EU – is the first Directive to make online gambling operators subject to new anti-money laundering rules.

This means that gambling operators will have to run customer due diligence checks on people who wish to place a stake worth, or collecting winnings of €2,000 or more.

While previous Directives have applied to land-based casinos, this is the first time that online betting companies are included.

It’s not just the big gambling companies that need to listen up says Warren Russell, founder of W2 Global Data. “The regulators view is exactly the same for a startup as it is for a Betfred. They all have to meet the same regulations.”

So what happens if gambling companies don’t comply?

According to a whitepaper by W2 Global Data, two gaming operations set aside a combined £1.7m due to failings in AML in September 2015. According to the UK Gambling Commission, these cases provided “valuable learning for gambling companies of all sizes and across all sectors” and that “all operators should review the conditions of their licences in light of these cases and take a critical approach to assessing their policies and procedures, in particular to ensure they are being followed by staff and remain fit for purpose.”

Until now W2 has been working to become a household name in Know-Your-Customer (KYC) products in the payments industry, helping financial organisations to learn more about their customers through powerful and tailored online screening.

Having done an amazing job (they’ve formed great relationships with all of the issuing banks), they’re looking to repeat their success in the gaming industry, securing their first big gaming client in January 2016. With a great team behind them, anything is possible…

W2 Global Data offer a range of products to help companies run due diligence checks on their customers. Get in touch with them today to see how they can help your business.

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