The Gambling Commission (Commission), following on from its response to the Summer 2023 Consultation on “proposed changes to LCCP, remote gambling and software technical standards, and arrangements for regulatory panels”, has now outlined the changes made to the Personal Management Licences (PML) requirements under the Licence Condition and Codes of Practice (LCCP) 1.2.1(2), which will come into force on 29 November 2024 (the Effective Date).

For context, in the Summer 2023 Consultation, the Commission proposed to further clarify the requirements of PML, as well as extend the reach of PML coverage, by amending LCCP 1.2.1(2). Specifically, the Commission proposed that those who are:

1. responsible for chairing a Board within an organisation (where the licensee has such);
2. largely and primarily responsible for a licensee’s anti-money laundering (AML) and counter-terrorist financing (CTF) functions like a money laundering compliance officer (MLCO);
3. responsible for the overall management and direction of a licensee’s business and or affairs, such as a CEO, Managing Director or equivalent; and or
4. responsible for submitting reports of suspected or known money laundering or terrorist activity under the Proceeds of Crime Act 2002 (POCA) and Terrorism Act 2000 (TA) like a money laundering reporting officer (MLRO) and or nominated officer (NO);

must hold a PML (except in respect of ancillary remote licenses).

In its response to the Summer 2023 Consultation, and as discussed in our previous insight article here, the Commission indicated it will implement the above proposal into the following (below) as the final wording of LCCP 1.2.1(2), which identifies those individuals in specified management offices who must now hold a PML:

“The specified management offices are those offices (whether or not held by a director in the case of a licensee which is a company, a partner in the case of a licensee which is a partnership or an officer of the association in the case of a licensee which is an unincorporated association) the occupier of which is by virtue of the terms of their appointment responsible for:

a. the overall management and direction of the licensee’s business or affairs (this is likely to be the Chief Executive Officer, Managing Director or equivalent). 

b. chairing the Board (where the licensee has such a body) where that appointment is held for a fixed or indeterminate term of office, unless:

1. the position is held only on a transient and short-term basis for individual meetings; and
2. the licensee retains evidence in support of point 1.

         […]

 i. the licensee’s anti-money laundering and counter-terrorist financing function as head of that function his is likely to include the following: 

a. for holders of casino licences, the person responsible for compliance with the relevant regulations (and appointed in accordance with those regulations); and the person responsible for submission of reports of known or suspected money laundering or terrorist financing activity under the relevant legislation (and appointed in accordance with the relevant regulations)

 b. for holders of licences other than casino licences, where an individual has been appointed to submit reports of known or suspected money laundering or terrorist financing activity under the relevant legislation, that individual.”

What does this mean?

The Commission has now made it clear that those who are responsible for chairing the Board of an organisation (where the licensee has such), will be required to hold a PML, whether they have been appointed on a fixed term or unspecified term, which in effect brings such individuals within the remit of the definition of ‘management office’ as per s.80(5) of the Gambling Act 2005. In doing so, this requirement will not apply to those whose term is on a short-term basis for the purposes of chairing individual meetings on an ad hoc basis for instance. The Commission has noted that it will be allowing a longer period for operators to identify such individuals, and so, the PML application for those who have the responsibility of chairing the Board will open from 1 August 2024, in order to comply with the Effective Date.

With respect to those persons with AML and CTF functions (as per the amended LCCP, 1.2.1(2)(i)(a)-(b)), the requirement to hold a PML will now align with the Commission’s requirements as stated in “The prevention of money laundering and combating the financing of terrorism” guidance, and will extend to those who are obliged to comply with POCA and TA, such as MLROs, MLCOs and NOs. Therefore, in order to comply with the Effective Date, PML applications for AML and CTF roles will open from 1 June 2024.

The Commission is already accepting PML applications for those responsible for the overall management and direction of businesses with immediate effect. Hence, such individuals must ensure they have submitted their PML application in good time in order to comply with the Effective Date.

By extending the coverage of those individuals who would need to hold a PML, this reflects the Commission’s intent to not only increase the culpability of PML holders, but to also ensure the Commission is in a sufficient position to act when breaches of the LCCP are found and identified.

In summary:

1. LCCP 1.2.1(2) will come into force on 29 November 2024 which will extend PML coverage and requirements (as outlined in the above).
2. PML applications for those who have the responsibility of chairing the Board of an organisation will open from 1 August 2024.
3. PML applications for those with AML and CTF functions will open from 1 June 2024.
4. PML applications for those who are responsible for the overall management and direction of a business are open and are being accepted by the Commission.

For further information in relation to PML applications, and the handling of such, please see here.

We frequently advise on aspects of PML applications, so please do get in touch if you have any further questions.