A recent report has revealed significant vulnerabilities in Liberia’s gambling industry concerning money laundering and financial crime. The findings, highlighted by the Inter-Governmental Action Group Against Money Laundering in West Africa (GIABA), point to serious flaws in the country’s regulatory framework.
Despite managing substantial daily cash transactions, the sector remains exposed due to insufficient regulations and oversight.
Among the critical issues identified are the lack of transaction thresholds for casinos and the exclusion of internet and ship-based casinos from the National Lottery Authority (NLA) Act.
Additionally, the report criticized the inadequate “fit and proper” test, which fails to incorporate essential character checks like criminal background screenings for key individuals involved in gambling operations.
Moreover, the report raised concerns about the NLA’s unclear role as an anti-money laundering supervisor, casting doubt on its ability to effectively oversee the industry. This lack of clarity further complicates efforts to combat financial crime in Liberia’s gaming sector.
Planned specialized training program
In light of the pressing issues surrounding money laundering and financial crime in Liberia’s gambling sector, the Financial Intelligence Agency (FIA) has teamed up with the National Lottery Authority (NLA) to implement a specialized training program for its staff.
This initiative aims to enhance the skills of regulators in identifying suspicious activities and effectively enforcing customer due diligence.
On September 24, the FIA conducted an Anti-Money Laundering and Countering the Financing of Terrorism (AML/CFT) workshop, equipping participants with essential tools to strengthen transaction monitoring systems.
Mohammed Ali Nasser, FIA’s Officer-In-Charge, emphasized the urgency of this program, noting the significant cash flows involved in the gambling industry. He stressed the importance of continually updating the knowledge and capabilities of regulators and operators to ensure they can detect and report any irregularities efficiently.
“This training is a strategic initiative to strengthen the NLA’s capacity and address critical AML/CFT gaps,” Nasser said.
Beyond revenue generation
The collaboration between the National Lottery Authority (NLA) and the Financial Intelligence Agency (FIA) is being celebrated as a significant enhancement to the NLA’s operations.
NLA Deputy Director General, Richlue Burphy, “We are now better positioned to ensure that our services contribute to national development, not to financial crime.”
Burphy highlighted that the NLA’s responsibilities extend beyond financial gains to include protecting public trust and national security. He added, “This underscores a strategic shift from viewing the NLA solely as a commercial entity to recognising its vital role in ensuring the integrity and security of the national lottery system.”
The recent fines imposed by the FIA on Colony Casino and 50/50 Casino for violations of the AML/CFT Act further illustrate the existing regulatory gaps in the sector. This situation has prompted a need for stronger oversight, which the specialized training for NLA staff aims to address.
Under the revised regulatory framework, gaming operators must now disclose their ultimate beneficial owners to the NLA, promoting transparency and helping to mitigate financial crime risks.
The training concluded with certificates awarded to NLA staff, but it’s true significance lies in closing crucial AML/CFT skills gaps and strengthening the regulatory relationship between the FIA and NLA.
Source: Focus Gaming News
