ATFIELD Sports Law’s Post

⚽️ As we celebrate this year's European Football Championships, it's crucial to acknowledge the financial controversies that have long entangled the sport. High-profile scandals like the 2015 FIFA #corruption case and the contentious World Cup awards to Qatar (2022) and Saudi Arabia (2034) have significantly tarnished the sport's reputation. Recognizing the severity of the issue, the European Union (EU) has included football clubs in its new #antimoneylaundering/ #counterterroristfinancing (#AML/ #CTF) regulations. Investigations across Europe have revealed widespread financial crimes within football, extending beyond elite clubs to various national leagues. Examples include: - Sale of AC Milan by Silvio Berlusconi: Italian prosecutors investigated whether the 740 million euros paid by Chinese investors to Berlusconi was deliberately overvalued. - Manchester City: Charged with breaching financial fair play rules around 100 times over nine years. - Chelsea FC: Under scrutiny for secret payments from former owner Roman Abramovich, potentially breaching league rules. - Hertha Berlin: Investigations suggested that funds for the club came from illegal transactions by former owner Lars Windhorst. The inclusion of football clubs under the EU's AML/CTF regulations follows years of warnings from expert committees like the Financial Action Task Force (FATF) about the sport's susceptibility to #moneylaundering. Key factors include the global popularity of #football, significant financial transactions, cross-border dealings, and sometimes opaque ownership structures. Football clubs, defined as licensed entities participating in national leagues with contractual staff, will be required to implement AML/CTF programs based on their #riskassessments. #Redflags include unknown investors, funds from #taxhavens, over/underpricing in transfers, and involvement of #politicallyexposedpersons. The regulation exempts smaller clubs with a turnover of less than 5 million euros over the past two years to avoid disproportionate burdens. However, all clubs, particularly professional ones, must prepare for regulatory scrutiny by establishing robust #compliance mechanisms. To comply, football clubs should begin with thorough risk assessments and develop AML/CTF frameworks tailored to their specific risks. This preparation will be crucial during the five-year transition period to meet the new regulatory standards. Ensuring adequate #duediligence on investors, sponsors, and other partners will be an essential component of these programs.

⚽ The Euro’s are Approaching as Football is Under Scrutiny: New EU Anti-Money Laundering Rules 🇪🇺 Brussels It’s official: the world of football is at the centre of the European Union’s new anti-money laundering rules. ⚽️ The EU Council has given final approval to regulations that will impose checks and verification requirements for clubs, agents, and sponsors starting in 2029. 🇪🇺 Recognizing the high-risk nature of the soccer sector, European lawmakers have decided to regulate this market, which sees substantial money flows and turnover. ⚽️ The regulation's preamble notes, “the activities of professional soccer clubs competing in the highest divisions make them more exposed to higher risks of money laundering and its predicate offences than football clubs in lower divisions.” Starting in 2029, top professional soccer clubs involved in high-value financial transactions will need to: 1️⃣ Verify the identity of their clients. 2️⃣ Monitor transactions. 3️⃣ Report any suspicious activity to relevant Financial Intelligence Units. ⚽️ Exceptions may be granted by member states for top division clubs with annual sales of less than five million euros over the last two calendar years. Similarly, national authorities may exclude sports betting services based on proven low risk. This move is part of a broader legislative package aimed at combating the financing of terrorism and illicit activities. The Council of the EU has also approved: 1️⃣ Strengthened supervision provisions for the ultra-rich (assets of at least 50 million euros, excluding principal residence). 2️⃣ An EU-wide limit of 10,000 euros for cash payments. 3️⃣ The establishment of the European Anti-Money Laundering and Terrorist Financing Authority (AMLA), based in Frankfurt, operational from mid-2025. ⚽️ Unlike the soccer regulations, these measures will come into effect immediately, 20 days after publication in the official gazette. #antimoneylaundering #eu #soccer #financialsecurity #aml #amla #compliance #europeanUnion #sportsregulation #financialIntelligence ##europeanchampionships #euros #football

With #UEFA #Euro2024 in Germany just around the corner ⚽ 🏆 , it’s the perfect time to discuss the EU's new regulation designating #soccer clubs as #AML-obliged entities. This groundbreaking regulation will, for the first time, include high-level professional #footballclubs, #footballagents, and European football associations within the EU’s AML framework.   #Football has long been recognized as an attractive industry for #moneylaundering. In 2009, the #FATF highlighted the vulnerabilities of football to money laundering. The sport's massive economic and social impact, coupled with the huge influx of money, the multinational nature of player transfers, and the often unpredictable and irrationally large sums of money involved, create a prime environment for #financialcrimes. Additional risks stem from integral areas connected to the main business, such as #betting, large cash incomes from ticket sales, #bartering, and crowdfunding. Given these vulnerabilities, the EU has decided to regulate this industry. Football clubs will soon be required to conduct due diligence on investors, transfer agreements, and various other counterparties, focusing on identifying #beneficialowners and #sanction designation. They will also have to monitor transactions, report suspicious activities to the #FIUs, conduct #ML #riskassessments and implement proper internal control systems to mitigate these risks. Drawing from my extensive experience in both #banking and #insurance - the most regulated financial sectors - as well as my involvement in start-ups and heavily structured organizations, I can confidently say that proactive measures, even though time and budget-consuming, can protect football clubs from financial losses, legal, and reputational risks.   At WIACON, we are equipped to help you navigate this significant industry milestone. Our team has the expertise to conduct comprehensive business analyses and implement robust AML frameworks, ensuring your club staying ahead of the game and secure its legacy. #risk #riskassessment #beneficialownership #beneficialowner #financialcrime #FIU #AFC #EUregulations #AMLlaw #EU #Law

Good initiative from Anti-Money Laundering Europe to organize an event at the European Parliament to discuss the EU’s new AML legislative package. It was the perfect opportunity for the European Leagues - represented on the occasion by our Deputy General Secretary Alberto Colombo - to share their preliminary views on the process, impact and ideal implementation of the new legislation now that football clubs will become obliged entities within the scope of the new EU Anti-Money Regulation, as from 2029. Stakeholder engagement with both the new established Frankfurt based AML Authority and with the appointed national supervisory agencies will be key for domestic Leagues and National Associations to support their member clubs to comply with the new financial regulations during the upcoming years. #EU #EuropeanParliament #AML #AntiMoneyLaundering

On April 24, 2024 a decision by the European Parliament to adopt a package of laws marked a pivotal moment in the EU's fight against money laundering and terrorist financing. In this episode of ACAMS Live, Craig Timm explains the key aspects of this legislative package: 1️⃣ The Anti-Money Laundering Authority (AMLA): to improve the supervisory collaboration across the EU, focusing on institutions with the highest risk. 2️⃣ The Anti-Money Laundering Rulebook regulation: to establish a single rulebook across the EU to harmonize and reinforce the rules, thus addressing operational inefficiencies and regulatory disparities. 3️⃣ The Sixth Anti-Money Laundering Directive: includes the verification of beneficial ownership and restores access to these records for those with 'legitimate interests'. Here's a helpful white paper we produced on Beneficial Ownership 👉 https://bit.ly/3Uncx1Q These topics will be explored at the upcoming Assembly Europe in Amsterdam, next week – we hope to see you there! https://bit.ly/3FWvRMg We will also be broadcasting a special edition of ACAMS Live from The Assembly Europe, on the topic of financial crime in sports. Register for this session online 👉 https://bit.ly/44nuVfy If you are attending The Assembly Europe, join us in person on Tuesday, May 7, 2024 at 12.15 PM in Room G104. #AML #AntiMoneyLaundering #TerroristFinancing #EuropeanUnion #FEU #Sports #ACAMSLive #AssemblyEurope

Dame Tracey Crouch’s long-awaited Independent Football Regulator (IFR) is finally set to become law, following a lengthy and often challenging journey since her 2019 call for a fan-led review of English football governance. This major development aims to strengthen oversight, ensuring sustainable growth across all levels of English football. 1. Why was there such a delay in establishing the Independent Football Regulator? The IFR’s progress was slowed by a series of events, from the pandemic to political shifts. Though initially pledged in the 2019 Conservative manifesto, it wasn’t until the failed European Super League proposal in 2021 that the government fast-tracked Crouch’s review. Additional delays came with a general election and ongoing debate on amendments. 2. What key changes did Crouch advocate for in the IFR draft legislation? Crouch proposed a shift from strict alignment with UK foreign policy to allowing the IFR more independence in decision-making, especially in the owners and directors test. This adjustment aims to balance the need for regulatory oversight with the independence necessary for football’s long-term health. 3. How does the IFR impact the future of English football? The IFR is expected to secure financial stability and fair resource distribution across all levels, enhancing football’s role as a “top export.” With safeguards for backstop powers, the IFR could also intervene if voluntary governance measures fail, driving sustainable growth and a more equitable financial structure in English football. Read the interview 👇 https://lnkd.in/dDBszWJx #SportsBusiness #Football #SportsBiz #Finance #Forecast #Data #Tech #Intelligence

OFAC has de-listed Alexander-Walter Studhalter, a Swiss national who was designated for allegedly supporting Suleiman Kerimov’s financial network. OFAC also de-listed his 2 sons, Jeremy Studhalter and Hugo Studhalter, and 8 connected companies, MG International, Stuurman Holding, Studhalter International Group, Swiss International Advisory Group, Papa Oscar Ventures, Swiss International Real Estate Portfolio, Eurimo Holding, and Sci AAA Properties. #UKSanctions #Russia #EUCommission #ExportControl #TradeWar  #TSECS #SanctionsUpdate #TurkishSociety #Sanctions #USA #OFAC  #BIS #TradeUpdates #GlobalTrade #TradeCompliance #InternationalRelations #EconomicSanctions #TradeRegulations #TurkishExports #TradePolicy #SecurityMatters #ForeignPolicy  #ComplianceNews #EconomicSecurity #CrossBorderBusiness

Spanish #police have arrested at least six people and raided the offices of the Spanish #soccer federation as part of a #corruption and #money laundering investigation that includes suspicions regarding the federation’s deal with Saudi Arabia to take the #Spanish Super Cup to the Middle Eastern country. #antimoneylaundering #AML #moneylaundering #dirtymoney #CFT #counterterrorismfinancing #financialcrime #financialcrimes #compliance #complianceofficer #duediligence #terroristfinancing #pep #sanctions #audit #FinancialIntelligenceUnits #FIU #SuspiciousActivityReport #cdd #kyc #regulations #CFP #risk #riskmanagement #investigation #monitoring #football #spain #ksa #saudiarabia

In the latest issue of our #FCPA update: -U.S. Authorities Settle with Former Sports Lottery Business and Charge Former Top Executive -DOJ Revises Policy to Incentivize Companies to Self-Report Even If They Cannot Meet All Voluntary Self-Disclosure Requirements Read more: https://bit.ly/41kqzWU #AssetManagement #InternationalLitigation #WhiteCollar #RegulatoryDefense #NationalSecurity

Congratulations to Frankfurt on Hosting the New AMLA It is with great enthusiasm that we congratulate the city of Frankfurt for being selected as the host city for the newly established #antimoneylaundering (AMLA). This pivotal development not only underscores Frankfurt's leading role in the financial sector but also highlights its commitment to enhancing the integrity of the European Union's financial system. The establishment of AMLA in Frankfurt is a significant step forward in the fight against money laundering and terrorist financing, promising to bring about a more harmonized and robust regulatory environment across the EU. Frankfurt's strategic positioning, coupled with its robust financial infrastructure, makes it an ideal location for AMLA, poised to effectively coordinate national efforts and ensure a stringent, unified approach to combating financial crime. Advocating for Copenhagen as a Hub for Fighting #Corruption in Sports Building on the momentum of establishing key financial oversight entities within Europe, we turn our attention to the pressing issue of corruption in sports and sports betting. It is an opportune moment to propose Copenhagen, Denmark, as the forefront runner in hosting a new specialized entity dedicated to eradicating corruption in sports, including money laundering and #matchfixing. Denmark's exemplary track record in transparency, low corruption levels, and its commitment to ethical standards positions Copenhagen as an exemplary candidate for this critical role. Copenhagen offers a unique blend of robust regulatory frameworks, advanced technological infrastructure, and a strong culture of integrity and fair play, essential components for effectively combating sports-related corruption. Establishing such an entity in Copenhagen would not only leverage Denmark's expertise in creating transparent, corruption-free environments but also signal a significant commitment to preserving the integrity of sports on a global scale. By focusing on Copenhagen for this initiative, we can harness Denmark's innovative approaches to regulation and its collaborative law enforcement environment, setting a global standard for preventing corruption in sports and sports betting. This move would also complement the efforts of existing financial and anti-corruption bodies, creating a more comprehensive framework for tackling the multifaceted challenges of money laundering and match-fixing head-on. Anyone to suggest their city? Some Danish irony is used, but also a truth of what is necessary if we want to fight money laundering and match-fixing within Sports and Sports betting. Michael Ask Nicholas Raudenski Declan Hill