UK Gambling Commission Finds More Money Laundering, Promises Larger Crackdown
The latest Compliance and Enforcement Report past the UK Gambling Commission (UKGC) is out. The regulator said operators and other gaming-related entities allay aren’t focusing enough on anti-money laundering (AML) procedures.
The Compliance and Enforcement Report provides an overview of the UKGC’s casework for the endure financial twelvemonth and highlights areas where the manufacture needs to “raise standards.”
The UKGC suspended the licenses of fivesome more operators and revoked 9 personal direction licence holders during the 2020-2021 financial years.
More Fines Than Ever Being Given
Additionally, 15 gaming and betting businesses were fined and issued regulatory statements totaling £32.1 one thousand thousand (US$42.36 million), which is more than any year before.
Overall, the commission’s compliance reports identified societal responsibleness and AML as the major issues throughout the financial year. They also provided the primary intellect for the legal age of enforcement actions.
Looking backward at enforcement in 2020/21, we ascertain the same ii weaknesses inward almost every display case – operators weakness to stick to to societal responsibleness and anti-money laundering rules,” UKGC interim CEO Saint Andrew the Apostle Rodhos states.
The UKGC noted that in that location were common problems with AML requirements. Those included relying too to a great extent on third-party providers to execute due diligence checks, delays inwards client identification checks, and a want of methodology inward put on the line assessments.
Additionally, some betting companies were criticized for making “vague references” to their risk assessments. For example, they cited KYC (Know Your Customer) checks, customer monitoring, or stated that crypto payments aren’t accepted, without providing additional information.
The commission also highlighted a trend in which operators get tended to prioritise commercial-grade considerations o'er meeting AML and societal responsibleness obligations.
UKGC Losing Patience with Some Operators
The UKGC could live sounding to submit spartan activity against retell offenders. Cecil J. Rhodes warned that the regulator will not tolerate “recidivist behaviors towards compliance” as operators are required to donjon their licenses in sound standing.
Rhodes made his remarks at GambleAware’s Annual Conference. He stated that the commissioning supports the conference’s “deeper collaboration to foreclose gaming harms” theme. The executive added that the UKGC should, ideally, only if have to focus on licensing matters, non enforcement. This isn’t possible, though, as in that respect is “too minuscule compliance” on the constituent of operators.
“Operators knuckle under £14.1 one million million (US$18.61 billion) after profits are paid,” he explained. “That agency that the manufacture can buoy use up £450 per sec from consumers within the UK. It is unbelievable to conceive. But what is more, if we occupy come out the National Lottery, 5% of customers business relationship for 90% of revenue gambling yield.”
The UKGC brag said that he believes that operators at present eyeshot fines as a “compliance measure.” They are a penalty to be paid without farther consideration. He asserted that the UKGC won’t tolerate this mentality. This is a potentiality suggest that responses to breaches may turn more severe than just financial penalties.
Rhodes concluded, “We are aware that if you bring out the incorrect friction, you tin parkway consumers to the disastrous market. But we are nowhere close that. Our regulatory posture has changed because on that point are too many cases that piddle everyone blush. [This] has to stop.”
The UKGC has previously warned that stricter measures would follow implemented. However, that was below a different regime that had a different draw close to enforcement.