The UK Gaming Commission issued a document detailing their 2020/21 compliance and enforcement endeavors. The document emphasized serious issues with how gambling businesses were managing money laundering and social responsibility.
The commission stated that these companies were prioritizing profits over adherence to regulations. They declared, “It’s not just the shortcomings that are worrying, it’s the rationale behind them. Our inquiries reveal that companies either didn’t provide their staff with sufficient resources or they placed generating revenue ahead of following the rules. This is completely unacceptable and other businesses that are striving to operate ethically will concur.”
The document pointed out that a major issue was that companies weren’t taking adequate steps to ensure their clients weren’t involved in money laundering. They weren’t conducting the necessary verifications, and they were overly reliant on other businesses to perform these checks.
The document also indicated that numerous companies were setting unrealistic thresholds for when they would investigate a customer. They were focusing on isolated aspects instead of considering the broader context.
A significant number of operators have been discovered to have insufficient “risk evaluation techniques” for combating money laundering and terrorist financing, while neglecting to recognize the connection between problem gambling and money laundering and terrorist financing.
The regulatory body cited various instances that occurred in the preceding year, including inadequate verifications, such as the £6 million penalty imposed on Casumo in March of this year due to a gambler losing £1.1 million without any responsible gambling interactions.
The regulatory body also highlighted that other instances were utilized as case studies to demonstrate how anti-money laundering practices were disregarded.
These included a patron depositing £20,000 in cash on two separate occasions while providing a false identity, another patron attempting to present a sealed package of cash at a gambling establishment while falsely claiming the cash originated from another operator, and a member of an organized crime syndicate utilizing proceeds from cybercrime at a high-end gambling establishment.
The report also voiced concern about operators who are more preoccupied with the negative impact of non-compliance with social responsibility guidelines on the media, while they should prioritize mitigating money laundering and terrorist financing risks.
The report reminds licensees that they should fully adhere to their license terms, “pertaining to anti-money laundering (AML) and counter-terrorism financing (CTF).”
Gaming establishment permit holders are also obligated to adhere to the provisions of the Anti-Money Laundering, Counter-Terrorism Financing and Funds Transfer (Payee Information) Act of 2017, encompassing modifications introduced by the government in 2020 and 2021.
Supervisory bodies have highlighted that the regulatory agency has consistently observed operators repeatedly neglecting to review risk evaluations, which have not incorporated the agency’s emerging risk publications. They have also indicated that they have consistently observed insufficient due diligence, which elevates the likelihood of accepting illicit funds, including criminal proceeds and terrorist financing.
Earlier this year, the regulatory agency reached regulatory settlement agreements with four entities operating gaming establishments and levied a fine on another casino after identifying shortcomings in each venue’s social responsibility and anti-money laundering practices.
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