A licensee shall appoint (with the amendments such appointment is to take place at the commencement of the license) at least one key official and such appointment has to be approved by the Authority and shall be a condition of the license.
An application for the appointment of a key official shall be made to the Authority in writing, on an approved form. For the Authority to grant such a license the applicant must satisfy the following criteria:
- resident in Malta;
- a director of the Company holding the license (this requirement is subject to being removed by the proposed amendments to the Remote Gaming Regulations);
- a physical person not a legal entity;
- a fit and proper person.
In determining whether the applicant is a fit and proper person, the Authority shall have regard to the following matters:
- the character of the persons vested with executive powers in the applicant, and the business reputation of such persons;
- the current financial position, financial background and business reputation of the applicant’s promoters, shareholders and directors;
- whether the applicant has the appropriate business ability to conduct remote gaming successfully;
- whether the applicant has, or is able to obtain, appropriate resources and is able to maintain minimum required reserves as may be established by the Authority in order to ensure that players shall have winnings paid and deposits returned;
- the commitment of the applicant to maintain a physical presence in Malta;
- whether the applicant is, in the Authority’s opinion, untainted with illegality;
- whether the applicant has followed policies and will take affirmative steps to prevent money laundering and other suspicious transactions; and
- whether the applicant has the capacity and the internal control structures to enable it to comply with the policies and directives which the Authority deems appropriate.
A key official license shall remain valid until it is cancelled by the Authority under any of the following grounds:
(a) the key official ceases to be resident in Malta;
(b) the key official ceases to be a director of the licensee;
(c) the key official ceases to be, in the Authority’s sole discretion, a fit and proper person.
The Authority may cancel the license of a key official if such an official is convicted in any country or territory of an offence punishable with imprisonment. To surrender his license, the key official requires the written consent of the Authority.
Duties and Responsibilities
- Any communication between the Authority and the licensee will take place solely through the Key Official. The Authority only recognizes the Key Official as the liaison with the licensee.
- The Key Official is the person who is obliged to ensure full compliance by the licensee. He is to ensure compliance with:
- All applicable laws and regulations;
- The conditions of the license;
- All directives issued by the Authority.
Non-compliance by the licensee is the responsibility of the Key Official for which he will be held accountable by the Authority. His responsibilities continue to subsist even during the suspension of the operator’s license.
- The Key Official shall personally supervise the operations of the licensee. Thus, he is accountable for any shortcomings by the licensee. He must:
- Ensure that games are fair and correct;
- Ensure that the operation is being promoted properly;
- Ensure that the remote gaming system is well kept; and
- Protect the image of the licensee.
- The Key Official must fulfill his functions under the Companies Act as director of the company. Furthermore, he must:
- Participate in key decision of the company;
- Have access to all company financial records;
- Have knowledge and access to all bank accounts with respect to the license; and
- Be a bank signatory.
The Key Official’s office must be the Licensee’s registered office.
- The Key Official is responsible for the control of the remote gaming system.
- The Key Official must have full access of the control system, i.e. he must have an administrative password and must have a player¡¦s account. He must be part of all change management procedures and must have a direct relationship with the co-location provider where the licensee’s equipment is sited.
- The Key Official must report any faults happening at ISP level that affects the site. He must be fully aware of the ISP’s BCP and were he fits in. Furthermore, he must ensure that the ISP’s BCP is updated regularly.
- The Key Official is responsible to ensure that remote gaming equipment is adequately insured.
- The Key Official shall be responsible for:
- Financial, administrative, data and record returns;
- Notifications and requests for approval by the Authority whenever required:
- Changes in shareholding and directors;
- Change in names;
- Change in capital;
- Changes to the Control System;
- New Games;
- Change to rules and regulations;
- Changes to payment gateway or payment methods;
- Approval of new affiliates, skins, operators, white labels, etc.
Such a function is of paramount importance since late returns may lead to administrative fines whilst omitted notifications may lead to suspension or cancellation of the operator’s license.
Furthermore, he must:
- compile and present all periodic reports on time (annual and monthly)
- compile and present all exceptional reports on time
- incident report within 24 hours of the incident;
- gaming equipment report within 24 hours of changes;
- customer complaints are to be forwarded immediately;
- player records on request by the Authority.
- pay the tax on time;
- assist the Authority in the certification process;
- assist the Authority in any investigation; and
- answer within reasonable time any queries
- The Key Official is to provide human resources information to the ETC and statistical information to the NSO.
- The Key Official must report any Suspicious Transactions (STRs) to the Financial Intelligence Analysis Unit (FIAU) or the LGA.
- The Key Official will necessarily have access to confidential data and information of the licensee. Whenever a Key Official intends to act in the interest of more than one operator, timely disclosure to all parties involved is mandatory. Written proof of such disclosure has to be rendered to the Authority.
- The Key Official must notify the Data Protection Commissioner on any transfer of personal Data of Data Subjects to and from third countries.