Anti-money laundering comes into focus with announcement on interim code for affordability checks expected soon

An announcement is expected shortly on an interim code for affordability checks which is expected to feature much higher thresholds than those proposed in last year's gambling white paper, but the UK government is coming under pressure to ensure anti-money laundering (AML) checks do not continue to catch bettors spending at much lower levels.

News on the industry-led code, which would set out uniform rules for when bettors are asked to give proof of affordability to bookmakers while the promised 'frictionless' solution is trialled, has been expected for some weeks but issues surrounding anti-money laundering checks, which also require customers to provide source of funds documentation, are said to have slowed progress.

Work on an anti-money laundering code is understood to have been carried out in parallel to the interim code for affordability checks, and BHA chairman Joe Saumarez Smith told the Racing Post: "We have already expressed our concerns to [gambling minister] Stuart Andrew and the secretary of state [Lucy Frazer] that any social responsibility code also needs to be reflected in changes to the AML code."

Under the government's proposals revealed in its white paper in April last year, bettors will be subject to affordability checks at a net loss of just £125 over 30 days or £500 in a year, with the resulting checks focusing on publicly available data.

A second enhanced tier of checks would take place if a punter recorded a net loss of £1,000 in 24 hours, or £2,000 within 90 days, and would entail more detailed checks of their finances.

At the lower level, the Gambling Commission has said the checks will initially come into force at a higher threshold for a short period of time, before reverting to a lower threshold later in the year, while a four-to-six month pilot of enhanced checks will take place to test they will be frictionless for punters.

In the meantime, the Gambling Commission and Betting and Gaming Council have been working on an industry-led code that would apply in the interim period to mitigate what Andrew has described as the "onerous, ad hoc and inconsistent" checks being applied by operators currently.

More details of the code emerged on Monday following a story in the Sun newspaper, while the Nick Luck Daily Podcast reported that enhanced checks would be triggered at much higher levels of £5,000 a month and £25,000 in a year under the interim code.

The Racing Post understands that those figures are accurate and would apply to net deposits, with lower limits for 18-to-24-year-olds.

However, anti-money laundering checks are triggered at lower levels, with the Gambling Commission's guidance setting out that identification and verification is required when a customer deposits funds, or withdraws funds or winnings, amounting to €2,000 or more.

The rules are specific to online casinos but also apply to betting because most online operators offer casino gambling and sports betting, and customers access both through the same account. 

Asked for his reaction to the reports, Jockey Club chief executive Nevin Truesdale said: “While this is clearly still speculation and not confirmed, it remains critical that the AML rules are not used as a mechanism through which to revert to the damaging and intrusive levels of checks that we have seen in recent months. 

"Punters need certainty that they will be free to place bets unhindered until the new thresholds are reached and even then, that common sense will be applied in assessing the need for any form of documentation request.”

Racing and betting also continue to be in talks about reform of the levy system, with Andrew due to report to parliament on progress by April 24. 

Read these next:

Concerns raised over use of open banking by gambling operators in affordability checks on customers 

Gambling Commission 'working really hard' - but racing still waits for results of affordability checks consultation 

Fall in betting turnover and impact of affordability checks could spark demise of British racing warns punters' body 

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