Niall Hearty of Rahman Ravelli outlines the action taken by the Gambling Commission
Online casino company ProgressPlay Ltd has been fined £1 million by the UK's Gambling Commission for failing to properly assess money laundering and terrorist financing risks.
The gambling regulator said it has also given the company, which runs 134 websites, a warning. The Commission added that ProgressPlay is now expected to undergo a third-party audit to ensure it is effectively implementing appropriate policies and procedures.
The Commission found that ProgressPlay had failed to scrutinise sufficiently transactions with customers. It had not verified customers' sources of funds and had not adequately monitored the activity of customers when they opened their accounts. This, according to the regulator, put at risk the early identification of possible gambling-related harm to customers.
The Commission also said that ProgressPlay had not implemented adequate procedures to enable it to understand the impact of its actions on customers' behaviour, which is a breach of its social responsibilities.
Three years ago, ProgressPlay was ordered to pay £175,700 for social responsibility and anti-money laundering failings.
The Gambling Commission's director of enforcement and intelligence, John Pierce, emphasised that businesses need to have robust - and regularly tested - policies and procedures in place to meet their responsibilities and protect customers.
The lesson to be learnt here is the importance of compliance. This fine is a clear reminder to all online gambling companies that their anti-money laundering risk assessments must be perfectly aligned to the Gambling Commission's guidance. In order to avoid enforcement action, they must take proactive steps to ensure their systems and controls are fit for purpose.
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