UKGC Significant LCCP changes to take effect from October 31st, 2020.
Following a 12-week consultation, in which the UK Gambling Commission (UKGC) has introduced 22 changes to LCCP conditions, regulatory returns, and official statistics. Now they have published the updated license conditions and confirmed that changes relating to license conditions and codes of practice (LCCP) will come into effect from October 31st, 2020.
According to the UKGC, the proposals discussed in the consultation aimed at:
Enhance quality of the data and the efficiency of the regulations
Ensure requirements are reconciled against their current and future data needs
Reflect their focus on customers and their social responsibility.
Reorganize their existing requirements
Decrease the regulatory burden.
What does this mean for you?
If you are interested in maintaining your compliance with UKGC, then you must comply to these new and amended requirements. For your convenience, we have listed some of the updated requirements most relevant to operators, below.
New License Conditions
License condition 15.1.3: Licensees must as soon as reasonably practicable, in such form or manner as the Commission may from time to time specify, provide the Commission with any information relating to cases where they encounter systematic, organized or substantial money lending between customers on their premises, in accordance with the ordinary code provisions on money lending between customers.
License condition 15.2.3: Licensees must notify the Commission in such form or manner as the Commission may from time to time specify, as soon as reasonably practicable of any actual or potential breaches by the licensee of the provisions of the Money Laundering, Terrorist Financing and Transfer of Funds (Information on Payer) Regulations 2017, or any UK Statutory Instrument by which those regulations are amended or superseded. They must also report addition or removal of nominated individuals responsible of licensee compliance, within 14 days of the event.
Amended License Condition
License condition 15.2.1: A key event is an event that could have a significant impact on the nature or structure of a licensee’s business. Licensees must notify the Commission, in such form or manner as the Commission may from time to time specify, of the occurrence of any of the following key events as soon as reasonably practicable and in any event within five working days of the licensee becoming aware of the event’s occurrence.
Any of the following applying to a licensee, any person holding a key position for a licensee, a group company, or a shareholder or member (holding 3% or more of the issued share capital of the licensee or its holding company):
Presenting of a petition for winding up,
Making of a winding up order,
Entering into administration or receivership,
Bankruptcy (applicable to individuals only),
Sequestration (applicable in Scotland), or
An individual voluntary arrangement.
UKGC has also removed clause 5, 6 and 9 from this condition 15.2.1 and amended the wording of clause 8 as follows,
The appointment of a person to, or a person ceasing to occupy, a ‘key position’ (including leaving one position to take up another). A ‘key position’ in relation to a licensee is:
a in the case of a small-scale operator, a ‘qualifying position’ as defined in the Gambling Act 2005 (Definition of Small-scale Operator) Regulations 2006.
b in the case of an operator which is not a small-scale operator, a ‘specified management office’ as set out in (current) LCCP license condition 1.2
c a position where the holder of which has overall responsibilityfor the licensee’s anti-money laundering and / or counter terrorist financing compliance, and / or for the reporting of known or suspected money laundering or terrorist financing activity.
d any other position for the time being designated by the Commission as a ‘key position’. (Notification is required whether or not the person concerned is required to hold a personal management license and whether or not the event notified requires the licensee to apply for a variation to amend a detail of their license.)
License condition 15.2.2: Licensees must also notify the Commission in such form or manner as the Commission may from time to time specify, or ensure that the Commission is so notified, as soon as reasonably practicable of the occurrence of any of the following events:
a any material change in the licensee’s arrangements for the protection of customer funds in accordance with the license condition 4 (protection of customer funds) (where applicable). License condition 15.2.2: Licensees must also notify the Commission in such form or manner as the Commission may from time to time specify, or ensure that the Commission is so notified, as soon as reasonably practicable of the occurrence of any of the following events:
b any change in the identity of the ADR entity or entities for the handling of customer disputes, as required by the social responsibility code provision on complaints and disputes.
c their becoming aware that a group company which is not a Commission licensee is advertising remote gambling facilities to those residing in a jurisdiction in or to which it has not previously advertised or their becoming aware of a sustained or meaningful generation of the 3% or 10% of group Gross Gambling Yield / threshold being exceeded by the group in that jurisdiction.
d any actual or potential breaches by the licensee of the requirements imposed by or under Parts 7 or 8 of the Proceeds of Crime Act 2002, or Part III of the Terrorism Act 2000, or any UK law by which those statutes are amended or superseded.
In this condition:
a ‘group company’ has the same meaning as in condition 15.2.1; and
b without prejudice to section 327 of the Gambling Act 2005, ‘advertising’ includes: having a home page directed towards a jurisdiction and written in, or in one of, that jurisdiction’s official language(s), having arrangements enabling that jurisdiction’s currency to be selected for gambling or the use of payment methods available only in that jurisdiction, and providing a specific customer service facility referable to that jurisdiction.