Compliant Training Frameworks for OGRA Licence Holders

Online gambling can be vulnerable to fraud and other predicate offences to money laundering. Operators facilitate large volumes of inter-jurisdictional transactions and complex financial chains present criminals with opportunities to launder illicitly acquired funds through the layering of transactions, if not monitored correctly.

Chantelle Turton, Regulatory Compliance Manager at SolutionsHub and former Gambling Supervision Commission Inspector, highlights the importance of effective training for OGRA licence holders, emphasising its role in meeting regulatory obligations, safeguarding the industry and protecting players from financial crime and misconduct.

The Role of Staff Training 

Training is essential to ensure staff understand risks and are aware of money laundering (“ML”), terrorism financing (“TF”) and proliferation financing (“PF”) risks and how to mitigate them to fulfil regulatory obligations.  

Isle of Man OGRA license holders must adhere to AML/CFT requirements under the Gambling (Anti-Money Laundering and Countering the Financing of Terrorism) Code 2019 (the “Code”), including effective staff training under Part 6, Section 27.

Constructive training helps maintain the integrity and reputation of the Isle of Man as a secure and reliable jurisdiction for online gambling and properly implemented AML measures protects consumers from fraud and other financial crimes.

Who Requires Training & How often?

Whilst AML/CFT training should be provided to all staff across the business, the Code provides that training must be delivered to Officers & the Board of Directors, Senior Management and All Relevant Employees & Workers responsible for customer interactions, managing transactions and overseeing operational duties.

The Code requires training to be provided to all persons noted above at least annually, with refresher training delivered on an ongoing basis. Operators should deliver effective AML/CFT training for new employees, following changes to their model and on updates to AML/CFT legislation.

In addition to being delivered at least annually, training material should be regularly reviewed to ensure it remains effective and up to date. Operators should obtain employee feedback and undertake performance reviews on staff to identify any gaps in knowledge and further training needs.

What must Training Cover?

Within all training programmes, Operators should ensure the training material is comprehensive and is delivered to staff by a competent person who can elaborate on any points or questions as may be required.

In accordance with the Code, training should cover the following areas, but not limited to:

-            AML/CFT Legislation

-            Personal Obligations & Responsibilities

-            Detecting and reporting suspicious activities

-            How to avoid tipping off

-            Internal Policies, procedures & controls

-            Business & Sector Specific risks

-            Regulatory updates

-            Compliance with international sanctions

-            Detection & mitigation of proliferation financing

In addition to the mandatory training requirements outlined in the Code, operators should consider providing additional training in various other areas to relevant staff members as a measure of good practice such as Responsible Gambling, Data Protection and Privacy, Cybersecurity measures, Customer service and training on ensuring the fairness and integrity of games offered.

Staff should be able to identify and manage risks associated with certain individuals and the gambling sector, including checking customer due diligence and source of wealth/source of funds.

Evidencing Compliance

To demonstrate compliance with the Code, Operators must maintain accurate and succinct records of all training delivered to staff throughout the year to evidence that its obligations under Section 27 have been met.

Records should include Attendance Logs, Training Materials, Assessment Results and Training Frequency Logs.

Enforcement Action

The GSC has established an Enforcement Team that may deliver key enforcement actions should Operators fail to comply with their AML/CFT obligations, including ongoing training requirements.

Such enforcement actions empowered under OGRA, and prescribed within subsequent secondary legislation can include Fines & Penalties and Licence Suspension/Revocation.

Enforcement action issued by the GSC and publicised can create significant reputational damage for the Operator, therefore creating a financial risk to the business through the loss of customers or business opportunities.

Next Steps

Ensuring your organisation has a robust and compliant Training Framework is essential for meeting your regulatory obligations and protecting your business and customers from financial crime.

If you would like support reviewing or enhancing your current framework, I’d be happy to help. Get in touch at chantelle.turton@solutionshub.im to schedule a consultation.