As part of an ongoing project for the set up and licencing of a gaming company, we were involved in the set-up of a bank account in Curacao for the client’s operations. Opening a bank account for a gaming operator in Curacao can be a daunting task that requires rigorous effort. This article provides practical insights for navigating this complex procedure.
The gaming industry is traditionally classified as high-risk, which means banks often require Special Purpose Vehicles (SPVs) to act as paying agents. In our case, the process was further complicated by the shareholder’s domicile in a Financial Action Task Force (FATF) grey-listed jurisdiction, increasing the likelihood of rejection.
Successful completion is guaranteed by anticipating and addressing the bank’s concerns comprehensively and providing extensive documentation including proof of funds, license verification certificates (LVC), and economic justifications.
Here are five key insights that streamlines the process for gaming operators:
The gaming industry is traditionally classified as high-risk, which means banks often require Special Purpose Vehicles (SPVs) to act as paying agents. In our case, the process was further complicated by the shareholder’s domicile in a Financial Action Task Force (FATF) grey-listed jurisdiction, increasing the likelihood of rejection.
Successful completion is guaranteed by anticipating and addressing the bank’s concerns comprehensively and providing extensive documentation including proof of funds, license verification certificates (LVC), and economic justifications.
Here are five key insights that streamlines the process for gaming operators:
1. Conduct Thorough In-House Due Diligence
Before approaching a bank, meticulous due diligence is essential to pre-emptively address weaknesses and anticipate queries. The due diligence should include a review of the corporate structure for compliance; collation of Know Your Customer (KYC) documents for directors, shareholders, and beneficial owners of the applicant. In some instance, the gaming operator may need to consider restructuring where high risks- such as grey listed jurisdictions- exist.
2. Obtain Robust KYC Documentation for Shareholders and Beneficial Owners
Banks prioritize the credibility of shareholders and beneficial owners of applicants in general, but this intensifies for gaming operators. To prepare, the gaming operator must showcase industry experience, or the existence of a skilled team employed by the business or consultants. Demonstrate sufficient funds to cover the business’s initial costs and establish the source of funds. Where shareholders or beneficial owners have holdings in other companies, this may be subject to scrutiny.
3. Develop Strong AML and CFT Policies
A sound Anti-Money Laundering (AML) and Combating the Financing of Terrorism (CFT) policy is non-negotiable. Under Curacao’s evolving regulations, gaming operators must appoint a qualified Compliance Officer (outsourcing is a permitted options) and the Gaming Control Board (GCB) will enforce stricter criteria for compliance officers, requiring proof of professional experience and qualifications from January 2025.
4. Ensure the Operator’s Website Meets Regulatory Standards
The banks will scrutinize the operator’s website for compliance with local regulations. The requirements include visibility of policies, terms, and conditions and access by end users/ players as well as display of a valid Green or Orange Seal on the domain, verifying the operator’s GCB license status.
5. Provide Proof of a Valid License
The banks require a GCB license or evidence of a pending application. This can be established through the submission of a License Verification Certificates (LVCs); copies of the GCB license application or the display of the appropriate seal on the operator’s website.
In conclusion, opening a bank account for gaming operators is inherently complex, especially for high-risk jurisdictions. Success requires tailored efforts, proactive communication, and a thorough understanding of compliance requirements. By conducting rigorous due diligence, preparing robust documentation, and addressing concerns strategically, operators can enhance their chances of approval.
Professional assistance provides invaluable guidance and significantly simplifies the journey for businesses navigating this process. The SteelRose Legal gaming department is uniquely equipped to provide expert guidance on setup, licensing, and strategic structuring tailored to markets across Africa, Europe, and Latin America.
In conclusion, opening a bank account for gaming operators is inherently complex, especially for high-risk jurisdictions. Success requires tailored efforts, proactive communication, and a thorough understanding of compliance requirements. By conducting rigorous due diligence, preparing robust documentation, and addressing concerns strategically, operators can enhance their chances of approval.
Professional assistance provides invaluable guidance and significantly simplifies the journey for businesses navigating this process. The SteelRose Legal gaming department is uniquely equipped to provide expert guidance on setup, licensing, and strategic structuring tailored to markets across Africa, Europe, and Latin America.