The newly appointed leadership of the National Lottery Authority (NLA) has committed to supporting the enforcement of Anti-Money Laundering and Countering the Financing of Terrorism (AML/CFT) compliance in the gaming sector.
In a recent meeting, Hon. Mohammed A. Nasser, Officer-in-Charge of the Financial Intelligence Agency (FIA) of Liberia, and Hon. Peter L. Solo, Director General of the NLA, discussed key AML/CFT concerns aimed at enhancing cooperation between the two supervisory authorities.
The discussions highlighted major regulatory reforms that will reshape the gaming sector’s landscape.
This includes the development and joint approval of regulations for Corporate Governance and Risk Management, guidelines for Transparency and Beneficial Ownership of legal entities, Customer Due Diligence and reporting requirements, and licensing and market entry requirements, including fitness assessments.
During the meeting, Hon. Nasser emphasized that all gaming operators must establish a formal board of directors. This board will appoint a Compliance Manager who will operate independently, while the board will oversee the Compliance Manager’s work to ensure accountability.
All gaming entities are required to identify and report their ultimate beneficial owners to prevent anonymity in financial dealings. Proper documentation of market entry and licensing is essential for record-keeping.
Nasser praised President H.E. Joseph N. Boakai and the Liberian Cabinet for approving the national work plan for implementing a Beneficial Ownership Registry, aligning with international standards.
He stressed the need for gaming institutions to implement risk-based compliance programs tailored to their operations and customer profiles. Each entity should report transactions exceeding specified limits to the FIA to enhance financial transparency.
The FIA’s Officer-in-Charge proposed that all gaming companies comply with laws requiring the disclosure of beneficial owners to deter illicit financial practices.
“Transactions exceeding designated monetary thresholds must be reported to the FIA for increased scrutiny,” Nasser warned.
The FIA assessed the gaming sector’s exposure to money laundering and terrorist financing, referencing findings from Liberia’s 2021 National Risk Assessment (NRA) Report.
Nasser highlighted the importance of monitoring market entry and licensing controls to ensure rigorous evaluations of all gaming operators.
Risk-based inspections conducted by the FIA from September to December 2024 identified gaps in the operational systems of licensed gaming operators.
These inspections focused on evaluating AML/CFT compliance frameworks, identifying high-risk customers and products, and reviewing internal controls and mitigation strategies.
These inspections were prompted by the Second Round of Mutual Evaluation Report (MER2) released in 2023, which flagged significant compliance deficiencies in Liberia’s gaming sector.
Hon. Peter L. Solo, Director General of the NLA, emphasized that the NLA’s commitment to AML/CFT compliance represents a transformational achievement for Liberia’s gaming sector.
He stated that by enforcing robust regulatory standards and promoting transparency, the NLA aims to ensure the responsible operation of gaming institutions, preventing exploitation by money launderers and other illicit actors.
