Operator News
Guatemala – Congresswoman wants new gaming laws in Guatemala
By Phil - 27 November 2017
Congresswoman Nineth Montenegro has urged lawmakers to approve legislation, which would regulate betting in casinos, video lotteries and bingo halls.
The request comes over growing fears that the industry is being used for money laundering and terrorist financing. In June 2017, The Intendancy of Special Verification (IVE), the nation’s financial intelligence unit, sent an official letter to the President of the Congress with the specific request that legislation would be approved.
The legislation would regulate betting in casinos, video lotteries and bingo halls. The document was also signed by the director of the Financial Transactions Research Department, Erick Ramos who pointed out that the bill was primarily aimed at preventing illegal activities such as money laundering and concluded that there was in effect no government control over the industry. The letter in turn was also endorsed by the Presidential Commission for the Coordination of Efforts against Money Laundering or other Assets, Terrorist Financing and Financing of Proliferation of Weapons of Mass Destruction (COPRECLAF).
However, the government has taken no action on the issue since the document was released. According to Congresswoman Nineth Montenegro, gaming laws should be discussed as a matter of urgency since the government has international commitments and agreements when it comes to the fight against money laundering and terrorist financing.
“There are strong indications that these are sources of money laundering,” Montenegro said.
The official letter stated that, if new regulations were approved, then the legal framework for the prevention of money laundering and terrorism would be strengthened.
A new regulatory framework (Law 4294) has been on the cards ever since 2011. The Economy Commission of the Guatemalan Congress issued a favourable opinion on the initiative in 2014. However, despite the very real need for reform and even though the Commission gave it a favourable opinion, the bill was shelved.
The proposal contains 146 articles, although the IVE asked at the beginning of this year to work on the modification of several topics. The initiative seeks to regulate illicit activities, such as money laundering, and enforce compliance. At the same time, it proposes the creation of an entity, which would be in charge of administering, controlling and supervising gaming throughout Guatemala and establish new gaming taxes.
