Chile Addresses Money Laundering
Following promising reports about the casino industry’s recovery in the midst of COVID-19, Chile’s gambling authority has addressed money laundering in an effort to reduce the issue within casinos. Chile’s anti-money laundering work is a joint effort between Chile’s Financial Analysis Unit (UAF) and the Superintendencia de Casinos de Juego (SCJ), which is responsible for overseeing gambling regulations in the country.
Chile’s UAF and SCJ have pledged to collaborate on new anti-money laundering efforts. ©Bill Oxford
What is the new agreement?
A new agreement to prevent money laundering within casinos was recently signed by both Javier Cruz, the director of the UAF, and Vivien Villagrán of the SCJ. This “Convenio Marco de Colaboración” or “Framework Collaboration Agreement” has been undertaken in order to address the risk of financial manipulation and the financing of terrorist activities within Chile.
With the agreement, Cruz and Villagrán pledge to work together as heads of their respective organizations to provide oversight and punitive measures for those found guilty of money laundering. This agreement is an update to a similar framework from November 2009, which now complies with international standards.
Both organizations agree to exchange information relevant to the prevention of illegal activities, specifically around the following laws and regulations: No. 19,913, No. 19,995) and “Circulars UAF and SCJ.” As a part of it, approved gambling license holders will need to undergo inspections. The two organizations will also participate in training to better inform and prepare their officials for cracking down on this issue.
Why is such an agreement necessary?
UAF’s director Cruz explained the importance of such a measure in a recent press release, which was shared publicly on the SCJ website last week. He mentioned that such an effort is not possible without adequate collaboration and support from both sides.
“Gambling casinos are one of the actors in the National Anti-Money Laundering and Terrorism Financing System, and as such they must implement policies and procedures to prevent and detect suspicious operations related to both crimes. To do this, they must not only know the risks to which they are exposed, but also the warning signs to which they must be attentive so as not to be misused for the commission of illegal acts. Hence the importance of the collaboration, training and supervision activities that we can develop with the SCJ and the entities that it regulates and supervises.”– Javier Crus, Director, Financial Analysis Unit (Chile)
Chile’s Superintendent of Gambling Casinos, Vivien Villagrán agreed that the two must work together to prevent serious crimes that threaten the state, citing the importance of upholding international standards in addition to pre-existing Chilean laws around the subject.
She said: “International standards require us to strengthen inter-institutional coordination in order to protect the economy and the country from the serious damage caused by the crimes of money laundering and financing of the terrorism.”
The agreement’s timing is probably not coincidental. Though some Chilean casino operators have been allowed to reopen for patchy periods of time and these have shown financial profit, the industry is still far behind its standard opening hours and visitor capacities. That means much gambling is still happening online, and the SCJ is under enhanced pressure to regulate both verticals of the industry while also supporting financial recovery.
