The EU is stepping up its game against money laundering and CTF, extending its regulatory net to include the high-stakes world of professional soccer.
With the sport’s leading football clubs in the EU generating more than €4.5bn in the 2021/2022 season, and leagues in France, Germany, Italy, and Spain bringing in a total revenue of €10.9bn, the financial stakes are immense. This financial clout, combined with the sport’s visibility, makes it a potential target for money laundering activities, prompting the EU to act decisively.
Why the beautiful game is under scrutiny is not without reason. The realm of European football has not been immune to corruption scandals, and there’s growing concern over its use as a vehicle for laundering money. High-profile cases of kleptocratic wealth and oligarchs forced to divest from clubs due to government sanctions have only added to the urgency of implementing robust AML frameworks within the sport.
The EU’s new AML directives require soccer clubs, agents, and associations to engage in comprehensive risk assessments, conduct due diligence, monitor ongoing financial activities, and report any suspicious transactions. This approach is not just about compliance; it’s aimed at fundamentally altering how the soccer industry perceives and tackles financial risks, with a particular focus on identifying beneficial ownership and enhancing sanctions screening.
Across the English Channel, the UK is considering its regulatory options to ensure its football clubs adhere to financial regulations, despite the global popularity and financial success of the English Premier League. The challenge of enforcing AML regulations in an industry flush with cash and often outpacing the resources of enforcement agencies cannot be underestimated.
The precedent for AML measures in other luxury sectors underscores the evolving nature of financial regulation and the imperative for industries to adapt swiftly. The introduction of AML laws in soccer is a clear signal that no sector is immune from scrutiny, and the onus is on those within the game to align with best practices expeditiously.
For clubs and associated entities new to the rigors of AML compliance, there are valuable lessons to be learned from the financial sector and other regulated industries. Assessing risks, defining a clear compliance roadmap, and adopting data-led, risk-based remediation strategies are critical steps. Moreover, entities like Moody’s offer tailored AML due diligence and risk monitoring frameworks, underscoring the importance of specialised support in navigating these complex regulatory waters.
Digital transformation and the adoption of intelligent, real-time screening processes are vital for maintaining compliance and managing risk effectively. The new EU regulations offer both a challenge and an opportunity for the soccer industry to demonstrate its commitment to transparency and integrity, ensuring the beautiful game remains just that, unmarred by financial scandal.
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![Temenos (SIX: TEMN) today announced that National Bank of Iraq (NBI), part of the Capital Bank Group, has successfully gone live with Temenos core banking and payments. NBI, which has 27 branches across Iraq, offers a comprehensive range of services to individuals and businesses in the country. Since 2005, NBI has been majority owned by Capital Bank, one of the top financial institutions operating in the Jordanian and regional markets, with assets of approximately JOD 7.6 billion[1]. With this implementation, NBI moved from its legacy systems onto the same core banking platform as other entities in the Capital Bank Group. This will enable NBI to operate more efficiently and integrate seamlessly with other systems to develop new products faster and deliver an improved customer experience. Capital Bank Group is a long-standing Temenos customer with other entities in the Group including Capital Bank of Jordan, Bank Audi, Société Générale Bank Jordan and NBI Saudi Arabia, already on the Temenos platform. NBI also becomes the first part of the group to adopt Temenos Payments, which enabled the bank to process more than 100,000 transactions of incoming and outgoing domestic and international payments in the first 15 days of operation, with a 99% straight-through processing rate. The migration to the Temenos platform for core banking and payments at NBI was completed in under 12 months thanks to Temenos’ pre-configured banking and payments capabilities and APIs which reduced the need for complex customizations, as well as close collaboration between Temenos, NBI, Capital Bank and delivery partner ITSS. This success was recently recognized in the IBS Intelligence Innovation Awards, with Capital Bank winning ‘Best Implementation of Core Banking Services'. The implementation at NBI follows several other successful transformation projects with Temenos for Capital Bank in the last few years, including the launch of NBI’s branch operations in Saudi Arabia in just 45 days, as well as the integration of Bank Audi and the former Jordanian operations of Société Générale, each of which was achieved in under four months. Collectively, these projects helped Capital Bank to increase operational efficiency by more than 50% within three years, bringing significant cost savings and an improved customer experience. With faster, more accurate processing and immediate service requests, the bank has maintained high customer retention rates and a reputation for service excellence. Izzidin Abusalameh, Chief Operations Officer, Capital Bank Group, commented: “This achievement marks a significant milestone in our digital transformation journey and positions us as a leading player in the banking industry. We have seamlessly transitioned the National Bank of Iraq to a cutting-edge core banking system which will not only enhance operational efficiency but also support providing our customers with a superior digital banking experience. Our continued partnership with Temenos has not only provided us with an advanced technological platform but has also facilitated a culture of flexibility and adaptability, enabling us to execute our ambitious growth plans.” Lee Allcorn, Managing Director, Middle East & Africa, Temenos, said: “Congratulations to National Bank of Iraq and the Capital Bank team on this successful implementation that gives NBI business agility and the same modern technology platform and ability to deploy fast with pre-configured banking capabilities as the rest of the group. With Temenos, Capital Bank Group is future-ready, and we are proud to support them as they continue to innovate and leverage our platform to grow sustainably and enhance the banking experience for customers.”](https://fintech.global/wp-content/uploads/2024/04/rupixen-Q59HmzK38eQ-unsplash-2-218x150.jpg "Flutterwave teams up with Acquired.com to streamline outward remittances in EU and UK")
