AramOrbelyan

“Concern-Dialog”LawFirm

Senior partner

Georgia Gaming Congress, 2015

Anti money laundering and

terrorism financing legislation

Internationalinstruments

Conventions

FATF recommendations

Others

National legislation

Laws

Secondary legislation

The Financial Action Task Force

(FATF) recommendation 22

The customer due diligence and record-keeping requirements set out inRecommendations 10, 11, 12, 15, and 17,apply to(a) Casinos – when customers engage infinancial transactions equal to or above theapplicable designated threshold.

The designated thresholds for transactions

under FATF recommendation 22

Casinos USD/EUR - 3,000

Financial transactions above a designatedthreshold include situations where the transactionis

• carried out in a single operation or

• in several operations that appear to be linked

FATF Recommendation 10

Casinos should implement Recommendation 10(customer due diligence (CDD)), including identifyingand verifying the identity of customers, when theircustomers engage in financial transactions equal to orabove USD/EUR 3,000.

Conducting customer identification at the entry to acasino could be, but is not necessarily, sufficient.

Countries must require casinos to ensure that theyare able to link customer due diligence information fora particular customer to the transactions that thecustomer conducts in the casino.

FATF Recommendation 11

All necessary record on transactions shall bemaintained for at least five years.

All records obtained through CDD measuresshall be kept for at least five years after thebusiness relationship is ended, or after the dateof the occasional transaction.

CDD measures

Risk assessment

Report

Maintenance of records

NATIONAL LEGISLATION AND

FATF RECOMMENDATION 22

Armenia

Georgia

Russia

Reporting (monitoring) entities

Armenia

• Entities organizing Lotteries

• Entities organizing casinos

• Entities, organizing games of chance, including over internet

Georgia

• Entities organizing lotteries

• Entities organizing gambling

• Entities organizing other commercial games

• Casino, including internet casino

Russia

• Entities organizing betting

• Entities organizing gambling

• Entities organizing game of chance and lotteries, including over the internet

Transactions

Armenia

• Purchase of chips (lottery tickets)

• Betting

• Providing or payment of the win

• Any financial transaction connected with abovementioned

Georgia

• transaction concluded or implemented by the person and/or

• the series of concluded or implemented transactions aimed at partition of the transaction (its amount) .

• an attempt to conclude or implement the transaction which, pursuant to written instructions of the FMS of Georgia, may be related to legalization of illicit income or funding of acts of terrorism.

Russia

• получение денежных средств в виде платы за участие в лотерее, тотализаторе (взаимном пари) и иных основанных на риске играх, в том числе в электронной форме

• выплата денежных средств в виде выигрыша, полученнего от участия в лотерее, тотализаторе (взаимном пари) и ином основанном на риске игре, в том числе в электронной форме

Subject to report (monitoring)

Armenia

• The transaction is suspicious

• The amount of non-cash transaction is equal to or exceeds 20 mln AMD

• The amount of transaction in cash is equal to or exceeds 5 mln AMD

Georgia

• The amount of the transaction or the series of transactions exceeds GEL 30,000 (or its equivalent in other currency) (cash//non-cash)

• The transaction is suspicious

Russia

• The amount of the transaction is equal or more than 600000 RUR or

• In foreign currency, equal or more than 600000 RUR when exchanged

Subject to identification

Armenia

• Identification is required for transactions equal to or equivalent to 1 mlnAMD

Georgia

• the amount of the transaction (operation) exceeds GEL 3000 (or its equivalent in another currency);

• The client aims to carry out domestic or/and cross-border wire transfers that exceeds GEL 1500 (or its equivalent in another currency);

• Doubts arise regarding the veracity or adequacy of previously obtained client identification data;

• The transaction is suspicious

Russia

• The amount of participation or the win from participation exceeds the amount of income, which is not subject to taxation under Tax Code of Russia

FATF Recommendation 28

Casino should be licensed

Competent authorities should take the necessary legal or regulatory measures to prevent criminals or their associates from holding, or being the beneficial owner of, a significant or controlling interest, holding a management function in, or being an operator of, a casino

Competent authorities should ensure that casinos are effectively supervised for compliance with AML/CFT requirements

Risk-based approach supervision

AML/CFT supervision or monitoring

General processAllocation of AML/CFT supervision resources

Specific process

National risk assessment (risks

present in the country)

Sectoral risk assessment (gambling

business)

Firm specific risk assessment (type of

business , customers, products and services

Risk-approach measures

Professional team

Effective internal rules

Real risk assesment

Minimization of risks

Legal mechanisms of risk management

Cooperation with authorized state bodies

FATF Recommendation 35

Countries should ensure that there is a

range of effective, proportionate and

dissuasive sanctions, whether criminal,

civil or administrative, available to deal

with natural or legal persons covered by

Recommendations 6, and 8 to 23, that fail

to comply with AML/CFT requirements.

Sanctions

• Administrative (warning, fine)

• Criminal liability (imprisonment)Armenia

• Criminal liability (fine or imprisonment)Georgia

• Administrative (отзыв (аннулирование) лицензии, предупреждение, штраф)

• Criminal (fine, improsionment)Russia

Thank You for Attention

QUESTIONS?