Gambling Commission launches investigation into 17 casino firms for AML failings
Licence revocations considered a genuine risk with five operators potentially having their licences reviewed
The UK Gambling Commission has launched investigations into 17 online casino firms for failings in their AML and social responsibility processes, EGR Intel has learned.
The regulator yesterday wrote to firms, saying it was also considering putting five operators’ licences under review due to the “serious nature” of the failings.
The action comes after the Commission carried out a recent compliance assessment on the remote casino sector.
The regulator said it found companies failing to carry out sufficient AML checks, failing to do due diligence on customers and their source of funds, and failing to intervene when customers showed signs of problem gambling.
On the last point, the Commission noted: “We reviewed a large number of customer accounts during the assessments and identified potential signs of problem gambling based on consumers’ gambling pattern and spend. In many cases however this behaviour did not trigger a customer interaction.”
The regulator added on AML checks: “We are concerned that where ongoing monitoring of customer accounts is not proactively undertaken, both money laundering and/or SR issues go unreported.”
The Commission told affected operators they need to review their prevention of money laundering and terrorist financing and social responsibility policies to ensure they meet licensing conditions.
A potential licence revocation in 2018 is rumoured to be a real risk, with the Commission thought to want to send a message about its commitment to fair and responsible gambling.
Gambling Commission chief executive Sarah Harrison said in a statement Friday afternoon it was “vital” the industry protected consumers and kept crime out of gambling.
“The action we are taking to examine online casino operators’ compliance with money laundering and customer interaction requirements is just one example of how we will be relentless in turning that vision into reality,” Harrison said.
“As the online sector continues to grow, and now accounts for a third of the British gambling market, it is right that we maintain a sharp focus on online gambling. That is why in addition to our work on compliance among online casino operators, we have also been conducting a wider ranging review of online gambling looking at how the market has evolved and to identify where further action can be taken to make gambling fairer and safer for consumers.”
The regulator warned late last year there would be “tougher and broader sanctions on operators who fail to treat customers fairly and make gambling safe”.
Joe Saumarez Smith, the chairman of Bede Gaming, predicted last month the UK Gambling Commission will “undoubtedly strip an operator (or more) of their licence, probably in the first three months of the year”.
EGR Intel understands the Gambling Commission will make a formal announcement about the investigations on Friday afternoon.