TonyBet hit with six-figure fine by UKGC over AML failings
Operator slapped with penalty and warning after regulator identifies discrepancies in withdrawal and account management processes
TonyBet has been fined £442,750 by the UK Gambling Commission (UKGC) for failing to adhere to social responsibility and anti-money laundering (AML) regulations.
The regulator has also warned the operator and informed the firm that it would have to undergo a third-party audit to assess whether it is successfully implementing AML and social responsibility requirements.
These sanctions come after the watchdog reviewed TonyBet and found that it had “unfair” terms on its website.
TonyBet required identification documents for “all withdrawals” from customers despite not insisting on checks at earlier points in the customer’s journey.
Additionally, the UKGC found that the operator said it could confiscate winnings if customers failed to provide AML documentation within 30 days.
The last term that caught the regulator’s attention was that accounts would be considered dormant after six months of inactivity when the UKGC’s standards state that an account is dormant after a year of inactivity.
The regulator also noted that the operator failed to identify customers who may be at risk of gambling-related harm and failed to interact with at-risk customers.
TonyBet was found not to have conducted adequate risk assessments of the business being used for money laundering or terrorist financing and failed to have sufficient policies in place to prevent money laundering and terrorist laundering.
The UKGC noted that TonyBet was cooperative throughout the review and is improving its AML and social responsibility policies.
Kay Roberts, executive director of operations at the UKGC, said: “Not only does this case illustrate our drive to clamp down on anti-money laundering and social responsibility failures, but also highlights action we will take against gambling businesses who fail to be fair and open with customers.”
This is the second regulatory action by the UKGC in as many days, as the regulator found deficiencies in Vbet operator Vivaro Limited’s AML and safer gambling policies.
As a result, Vivaro agreed to pay the regulator a £337,631 regulatory settlement.