The gaming industry in Goa, initially on the backfoot, whenthe Anti Money Laundering Guidelines were issued for casinos, is informallydistancing itself from this till the government injects more clarity into what appearsto be knee jerk exercise “ well-intentioned but shoddily planned. In fact theanti-money laundering notification is a virtual copy of PMLA (Prevention ofMoney Laundering Act) rules with liberal doses of guidelines applicable tocasinos across the globe.
“We are already abiding by the rules and correspond with theFinancial Intelligence Unit (FIU) of Government of India,” said ShrinivasNayak, managing director of Neo Majestic, a five star resort in Porvorim.
Meanwhile the government is yet to establish the GamingCommission which was notified months back. The Casino industry feels that the gamingcommission is the need of hour and it should be established on priority. Theanti-money laundering notification has made mandatory for casinos to know theidentity and source of the money of the customer before he is allowed gambling.“This will kill the casino industry in Goa. It violates right of privacy of aperson,” said advocate Amit Palekar who represents two off shore casinos.Palekar has termed the amendment as immature and arbitrary. “There is no needto worry,” says an industry source, calling the notification as an eye wash.
Neetal Amonkar, undersecretary home said that though guidelineson anti-money laundering have been issued the rules are yet to be framed. “Weare in the process of framing the rules. It will be prepared in a month’s timeand will then by notified,” she said.
Xavier Vaz, Executive Director Operations, Casino Carnivalsaid “All the industry wants is mutual participation. The government and theindustry need to work on guidelines and rules together. To bring in completetransparency, the appointment of the Gaming Commission with industry representativesshould drive the process of change.
Only a professional regulatory authority will be able tobring in checks in the system” “Frankly, I’m a little surprised because certainguidelines don’t seem practical at all. The guidelines talk of foreign currencyconversions and issuance of checks which are not applicable here. The industrypays 15 percent entertainment tax on chip sales, income tax and annual licencefees. We welcome the move to grace funds sources, but the road map should bemade taking us into confidence”, said Moni Bose, the head of the Goa casinos ofUpdate Recreation and Gaming(P) Ltd.
The notification also asks to maintain records of a politicallyexposed person (PEP), who will be under scanner at the casinos.
“PEP is an individual who is or has been representingprominent public functions in a foreign country, head of states or ofgovernments, senior politicians, senior judicial or military officers, seniorexecutive of state owned corporations or important political party official,”the guidelines read. It has been made compulsory that all the relevant datarelated to customers should be preserved for at least 10 years, thenotification mentioned.
Goa has four off shore casinos currently working in riverMandovi, whereas there are a dozen on shore casinos in the State attached tovarious five star hotels.
