FATF Calls Out South Africa Gambling For Poor AML Checks

In South Africa, the government needs to improve AML checks across all online gambling sites to comply with FATF regulations. (Image by stockobust626118 on Vecteezy)

In South Africa, the Financial Action Task Force (FATF) has said that it still has concerns over the country’s domestic online gambling sector.

In particular, the FATF is directing its concerns towards AML (anti-money laundering) practices for online gambling sites operating under domestic licensing authorities in the country.

South Africa has been on the FATF’s grey list since a 2021 review. As the country is part of the BRICS economy and wants to improve its global financial standing, South Africa has been making an effort to remove itself from the grey list.

Yet, after making a concerted effort to improve its laws and regulations with a target of becoming fully compliant by 2025, there is still some way to go.

A 2023 consensus by the FATF specifically pointed out that in some areas of the country, the domestic licensing laws for AML checks and reports are still not up to scratch.

At this time, the South African government is still working towards complete compliance via its  FATF Africa Joint Group. That means casinos and sports betting sites are up next.

I wonder if this means online casino gaming will become an issue. Strictly speaking, casino games are not legal, while online sports betting is legal in the country.

The legality of online casinos and the current licensing set-up in SA is a topic we covered in our previous South African casino gambling news. In the report, you will find a section – The Current Remote Gambling Situation in the Country.

The report specifically covers how each province issues the current domestic licensing certificates in SA. As for the top-level laws on remote gambling, these fall under the National Gambling Board (NGB).

Nonetheless, despite AML issues within the online gambling sector, the FAFT has praised the country for steps made since the 2021 report to comply with FAFT anti-money laundering (AML) and counter-terrorist financing (CTF) policies.

In a statement by the FAFT, the global financial regulatory body has said: “South Africa has taken steps towards improving its AML/CFT regime, ensuring the effective implementation of targeted financial sanctions.” (Source: treasury.gov.za).

Do FATF Concerns Affect Casinos Reviewed by Casinoplusbonus

The simple answer is no because we have not reviewed any online gambling platforms in South Africa that operate under local licensing laws. All casinos reviewed that offer crypto and ZAR deposits and bonuses here on the Casinoplusbonus iGaming portal fall under licensing from Malta, Curacao, and, more recently, the Philippines.

Now, just to be clear, we are not talking about online casinos that service South Africa from overseas. Casino reviewed here on Casinoplusbonus is operating under Curacao GCB, and the Malta Gaming Authority (MGA), and under these authorities are subject to strict AML laws. Yet for your convenience, below, we offer explanations about the status of each country’s FATF status for those that operate an online gambling licensing authority for casinos we review here on our iGaming portal.

Curacao

Although not an FAFT member, Curacao has recently fallen in line with the Financial Action Task Force (FATF) by creating the new Gaming Control Board. The new licensing is part of an effort for the small island country to raise its Financial Action Task Force (FATF) global rating. The country has also altered many of its AML and CTF policies, so it has not been put on the grey list or the FAFT’s watch list.

Philippines

As for PACGOR online casinos, which are new to the iGaming scene, we are not yet sure how well this licensing authority manages its AML checks. Currently, the Philippines is not a direct member of the FAFT, but the country is on the FATF grey list.

Malta

As for Malta, the country has been flirting with the FATF grey list but, to date, is in good standing. In August 2023, Jack Bannon published a news report covering the MGA Macolin Convention Participation. The onus was about putting pressure on Malta to join the Macolin Convention from the FATF. As it stands Malta has not joined, yet, at the same time, the country is not on the FAFT grey list or any watch lists.

Current FAFT Status For Countries with Licensing That Cover Online Casinos Reviewed by Casinoplusbonus

Source: FAFT Black and Grey Lists

For more regulatory or financial related news from the Casinoplusbonus team, or new about South Africa, please feel free to use the tags and categories below in this new report.