The new law in Ukraine outlines the circumstances that may lead to a scheduled or unscheduled inspection of gambling operators. The authorities may choose to inspect operators for the following reasons:
- To clarify the nature of their operations
- To identify financial risks
- To assess the operator’s risk management system
- To check compliance with Ukrainian legislation
Planned inspections:
According to the rules, the frequency of inspections will be determined based on the operator’s exposure to AML/CTF risks. The planned inspection schedule will be approved by the gambling regulator, KRAIL. The timetable will be published at least 10 working days before the upcoming quarter.
Unplanned inspections:
The legislation specifies situations in which KRAIL may conduct unplanned inspections of operators’ offices and equipment. These situations include:
- Operators showing signs of violating legislation
- Execution of a court ruling
- Discovery of new documents not known during the planned inspection
- Failure to submit requested documents within the given period
- Suspected forgery of documents
Increased scrutiny on operators:
Following the invasion by Russian forces in February 2022, gambling operators in Ukraine have faced heightened scrutiny from the government. Operators offering services in Russia or Russian-occupied territories have been targeted. KRAIL received criticism for its delayed action against the Russian-linked operator 1xbet, and eventually, President Zelensky sanctioned the operator in August 2022 after a petition received over 26,000 signatures. Parimatch also suspended its Ukrainian operations in March 2023 after being sanctioned alongside other companies for conducting business in Russia or Russian-occupied territory.
