Source: BUS Sachsen-Anhalt (Linie6Plus)

Apply for exemption from the obligation to document the risk analysis in the gambling sector

Description

As an obligated party under the German Money Laundering Act (GwG), you must identify and assess the risks of money laundering and terrorist financing for the business you conduct in the gaming sector and properly document them in a risk analysis.

Provided that specific risks in your business area are clearly identifiable and

existing specific risks are clearly identifiable and
the risks are understood,

be exempted from the obligation to document a risk analysis upon request.

Re 1: The existing specific risks may be clearly recognizable, for example, if your business activities

do not involve complex business activities,
the transactions you carry out are of a manageable size,
your customer structure is homogeneous and
there are no other risk-increasing circumstances.

Re 2: A sufficient understanding of the specific risks can be assumed if the internal security measures taken by you (e.g. regular briefings of the personnel deployed and security checks) are appropriate to the risk.

Please note that the exemption from documenting a risk analysis does not exempt you from the obligation to prepare a risk analysis. Exemption can only be granted for the documentation.

You must continue to identify and assess risks of money laundering and terrorist financing on an ongoing basis and take suitable internal security measures to prevent them. You can only be exempted from the regular documentation obligation.

Prerequisites

Obliged parties under the Money Laundering Act: Only natural persons or legal entities that qualify as:
1. Financial undertakings within the meaning of Section 1 (24) GwG (obliged entities pursuant to Section 2 (1) No. 6 GwG)
2. Insurance intermediaries pursuant to § 59 of the Insurance Contract Act, insofar as they broker the activities, transactions, products or services covered by § 2 para. 1 no. 7 GwG, with the exception of insurance intermediaries operating pursuant to § 34d para. 6 or 7 no. 1 of the Trade, Commerce and Industry Regulation Act, and branches of such insurance intermediaries based abroad and located in Germany 3.
3. Service providers for companies and for trust assets or trustees if they provide the services specified in Section 2(1)(13) GwG for third parties (obliged entities pursuant to Section 2(1)(13) GwG)
4. Real estate agents (obliged entities pursuant to Section 2 (1) no. 14 GwG)
5. Bookmakers within the meaning of Section 2 (1) RennwLottG (obliged entities pursuant to Section 2 (1) no. 15 GwG)
6. Casinos (obliged entities pursuant to Section 2 (1) no. 15 GwG)
7. Betting agencies (obliged entities pursuant to Section 2 (1) no. 15 GwG)
8. Acceptance points within the meaning of Section 3 (5) of the Interstate Gambling Treaty, insofar as they offer the Oddset sports bet (obliged entities pursuant to Section 2 (1) no. 15 GwG)
9. Organizers of online games of chance (virtual slot machines and online poker) within the meaning of Sections 22a and 22b of the State Treaty on Gambling 2021 (obliged entities pursuant to Section 2 (1) no. 15 GwG)

are active.

Authorized representative: Applicant must be a member of management or an internal/external money laundering officer of the company.
Clear recognizability of the risks: z. E.g. presentation:

what risks your company is exposed to and
how susceptible it is to abuse against money laundering or terrorist financing

Sufficient understanding of the risks, e.g. presentation of the security measures taken based on the specific risks identified

Required documents

Application for exemption from the documentation of a risk analysis in the gaming sector: The application must demonstrate in a comprehensible and justified manner that the risks of money laundering and terrorist financing in your business area are manageable and clearly recognizable.

Proof of eligibility to apply
- Proof of appointment as money laundering officer or
- Contract on the outsourcing of internal security measures or
- Proof that the person submitting the application is a member of the company's management (e.g. extract from the commercial register or shareholders' agreement, organizational chart)
Current risk analysis: A comprehensible presentation of the internal security measures taken based on the identified and assessed concrete risks of money laundering and terrorist financing in your business area.
If applicable, a current excerpt from the commercial register: Registered companies should submit a current excerpt from the commercial register with their application. Legal entities in the process of being founded (GmbH, AG) submit the articles of association or articles of incorporation.

Informal application possible: No

Personal appearance necessary: No

Procedure

As an obliged entity, you apply to the competent authority for exemption from the obligation to document a risk analysis in the gambling sector
Your application will be reviewed by the competent authority
You will receive a decision once the procedure has been completed