Belgium Legal Update


Tus, EU-licensed gaming operators contribute to a safer and more transparent gaming environment, fostering consumer protection and minimising illegal activity. Labelling these operators as "non-sustainable" under ESG policies ignores their role in maintaining a regulated and secure market. If anything, banks should view their involvement with licensed operators as a means to support a transparent and regulated ecosystem rather than shunning them based on generalised moral assumptions.


THE AML ARGUMENT: A DISPROPORTIONATE BURDEN?


Another common justification for banks' reluctance to serve the gaming industry is the alleged heightened risk and compliance costs associated with AML requirements, which is questionable. Like other industries handling significant financial transactions, licensed gaming operators are “subjected entities”, i.e. they themselves are subject to AML regulations and must comply with national and EU-level AML laws, implementing robust measures to detect and prevent money laundering and other financial crimes. If these operators are already subject to extensive scrutiny and compliance obligations under AML laws, why should banks


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perceive them as riskier than other regulated professions? Notably, the refusal to serve gaming operators creates a paradox. By denying them access to banking services, banks may inadvertently push these operators towards less regulated or alternative financial systems, which could undermine AML objectives altogether. Tis is confirmed by the European Banking Authority that considered, in a noteworthy opinion of 5 January 2022 on de-risking, that the practice of not serving entire categories of customers, without due consideration of individual customers’ risk profiles, can be “unwarranted and a sign of ineffective ML/TF risk management”. When gaming operators are forced to resort to non-traditional banking solutions, it becomes harder to monitor and trace financial flows, increasing the potential for illicit activities rather than reducing it.


BASIC BANKING SERVICES: GOOD INTENTIONS, POOR OUTCOMES


In response to the banks’ exaggerated derisking behaviour, some EU Member States have extended the basic banking service, guaranteed under EU law to consumers, to also cover businesses. Experience shows, however, that this basic banking service often remains dead letter. It is not uncommon


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