May 27, 2024
IT’S A WRAP! OR IS IT?
As per April 30, 2024, the deadline for Curaçao application submissions ended; and EM Group is happy to announce a 100% submission rate for all its clients. #congratulations
But what does this mean?
In an official announcement dated March 28, 2024, Curaçao’s Gaming Control Board (GCB) announced that the online gaming license application deadline, which it had set as March 31, 2024, was extended by one month, to April 30, 2024.
The deadline had been set for existing online gaming companies in Curaçao, currently operating under the so-called sublicense regime, to qualify for the so-called ‘grandfather rights’ once the new legislation (LOK) is enacted (expected in summer 2024); these companies needed to (i) submit an online gaming license application before the deadline; and (ii) register a census for their existing sublicense.
The deadline was absolute for B2C activities (Operators), whereby it was announced by the GCB that another date would be set for B2B activities (Suppliers). However, with little further communication thereafter, many Suppliers cooperated with the deadline and filed under the same process.
But what happens now?
As Curaçao remains pending for the parliamentary process to vote on the LOK, with the ambition of enacting the LOK by July 1, 2024, the portal remains under temporary suspension for new applications due to, in combination with the deadline, an overwhelming number of applications and registrations. As this raises concerns for those not applicable to the above-mentioned deadline, it is expected of the GCB to reopen the portal for GCB to continue further processing of new license applications. It is important to take note that +700 applications have been received by the GCB, which has indicated a positive response to the transition process. Read our newsletter to further understand the specifics of the licenses available, including the fees and processes therewith.
Further updates
On May 21, 2024, the Curaçao Gaming Control Board (GCB) released new regulations for Anti-Money Laundering and Combating the Financing of Terrorism and Proliferation of weapons of mass destruction (AML/CFT/CFP Regulations) for the online gaming sector of Curaçao.
These regulations are effective as of May 2024. However, all online gaming providers operating from Curaçao will be fully bound to comply with these regulations as of September 1, 2024, giving a 3-month transitional period. Non-compliant after this date may result in sanctioning based on the above-mentioned legislation and more specifically issuing penalties and fines based on the National Decree for reporting unusual transactions (N.G. 2021, no. 69 as amended by PB 2023, no. 6) and the National Decree for service providers 2022 (N.G. 2023, no 6).
Additionally, please note that the National Ordinance of Identification when rendering services (N.G. 2017, no 92) and the National ordinance on the Reporting of Unusual Transactions (N.G. 2017, no.99) have been amended as of May 16 ,2024. These amendments have been officially announced by the GCB.
Should you be interested in a Curaçao license, please do not hesitate to contact me at [email protected]
Frequently Asked Questions
1. What was the significance of the April 30, 2024, Curaçao license deadline for applications?
The April 30, 2024, deadline was crucial for existing online gaming companies in Curaçao operating under the sublicense regime. Meeting this deadline allowed them to qualify for 'grandfather rights' under the new legislation, the National Ordinance on Games of Chance (LOK), expected in summer 2024.
Companies had to submit a license application and register their existing sublicenses by this date. This ensures they can continue operating seamlessly once the new legislation takes effect.
2. What are 'grandfather rights' in the context of Curaçao’s new gaming legislation?
'Grandfather rights' refer to the privileges granted to existing online gaming companies under the new Curaçao legislation (LOK). These rights allow current operators to continue their business activities under the new regulatory framework, provided they submitted their license application and registered their existing sublicense by the April 30, 2024, deadline. As the LOK remains in parliamentary process for the enactment thereof, this right will be subject thereto, which is to ensure business continuity and compliancy with the forthcoming regulations.
3. How did the deadline extension affect online gaming companies in Curaçao?
The GCB had issued guidelines for the submission of license applications as late as March 22, 2024, which was -due to its late timing- not well received by the sector. Ongoing difficulties and obstructions on the GCB portal and objections raised by several stakeholders, made extension of the deadline inevitable. Therefore, the extension from March 31, 2024, to April 30, 2024, gave online gaming companies an additional month to prepare and submit their license application and census registrations with the guidelines.
4. What steps must B2C online gaming operators take to comply with the new Curaçao legislation?
B2C online gaming operators must submit a license application and register their existing sublicense by the specified deadlines to qualify for grandfather rights before April 30, 2024. They must also comply with the new Anti-Money Laundering (AML) and Combating the Financing of Terrorism (CFT) regulations, effective September 1, 2024.
This includes adhering to updated procedures for reporting unusual transactions and ensuring compliance with national decrees on service provider regulations.
5. How do the new Anti-Money Laundering (AML) and Combating the Financing of Terrorism (CFT) regulations impact online gaming providers in Curaçao?
The new Anti-Money Laundering (AML) and Combating the Financing of Terrorism (CFT) regulations, effective May 2024, require online gaming providers to enhance their anti-money laundering and counter-terrorist financing measures. Providers must comply fully by September 1, 2024. Non-compliance may result in penalties and fines.
The regulations aim to strengthen the integrity of Curaçao’s gaming industry by enforcing strict anti-money laundering laws, and financial crime and terrorist financing penalties.
6. What are the consequences of not complying with the new Anti-Money Laundering (AML) and Combating the Financing of Terrorism (CFT) regulations by September 1, 2024?
Amongst a number of regulatory obligations, it is imperative for online gaming companies to adhere to AML regulations, adhere to CFT regulations, compliance with changing AML legislation, ensure thorough customer due diligence, combat money laundering and ensure that their operations are not involved in financial crime.
Non-compliance with the new Anti-Money Laundering (AML) and Combating the Financing of Terrorism (CFT) regulations by September 1, 2024, can result in significant penalties and fines. The GCB will enforce these regulations rigorously, using national decrees to sanction non-compliant providers. This includes potential penalties for failing to report unusual transactions and not adhering to service provider standards.
Compliance is essential to avoid disruptions and legal repercussions.
If you would like the support to ensure that your company is compliant with the latest Anti-Money Laundering and Customer Due Diligence regulations set by the Gaming Control Board or if you need assistance with setting up a regulatory and legal framework or need any guidance on topics related to regulatory compliance, then contact us. Our international standards and expertise ensure that your online gaming company is stays compliant.
7. What changes were made to the National Ordinance on the Reporting of Unusual Transactions?
As of May 16, 2024, amendments to the National Ordinance on the Reporting of Unusual Transactions have been implemented. These changes enhance the reporting requirements for online gaming providers to ensure better detection and prevention of suspicious activities. The amendments align with the new Anti-Money Laundering (AML) and Combating the Financing of Terrorism (CFT) regulations, reinforcing the overall framework.
Providers must familiarize themselves with these changes and be compliant.
8. How can I apply for a new Curaçao gaming license?
To apply for a new Curaçao gaming license, you must wait until the GCB reopens the application portal. The portal is temporarily suspended pending feedback from Master License holders. Keep updated with GCB announcements and prepare the necessary documentation and compliance measures in advance. Contact us for personalized assistance and guidance throughout the application process to ensure a smooth and successful submission.
9. What should B2B gaming suppliers do following the April 30, 2024, deadline?
Although the April 30, 2024, deadline was primarily for B2C operators, many B2B suppliers also submitted their applications. B2B suppliers should stay informed about further deadlines and requirements set by the GCB. Compliance with the new Anti-Money Laundering (AML) and Combating the Financing of Terrorism (CFT) regulations by September 1, 2024, is also mandatory.
Suppliers should ensure they meet all regulatory standards and prepare for any additional application processes once the portal reopens. The GCB expects online gaming companies to commit to preventing money laundering activities and adhere to AML rules and guidelines. Whether you are a Curaçao gaming company or looking to setup your operations in Curaçao, we have the online gaming industry expertise to support prospective clients with their compliance, corporate and license requirements to operate in the island nation.
10. Where can I find detailed information on the new Curaçao gaming regulations?
Detailed information on the new Curaçao gaming regulations, including Anti-Money Laundering (AML) and Combating the Financing of Terrorism (CFT) measures, can be found on the Gaming Control Board’s website and/or EM Group’s website. The specific amendments and guidelines are available at GCB AML/CFT Regulations.
The GCB aims to address money laundering and combat terrorist financing through these guidelines.
For personalized advice and support, contact us to ensure you understand and comply with all new regulatory requirements effectively. We take special measures to ensure your online gaming company stays compliant with regulations and possess the expertise you need for Curaçao and other jurisdictions.
Written by Arran McCarthy
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