Gamesys agrees to pay £1.2m after AML and SR failings in UK
Published 12th June 2019
An official Commission investigation found historical weaknesses that resulted in breaches of the 2007 money laundering regulations, and a failure to comply with Social Responsibility Code Provision 3.4.1.
Gamesys, which also operates an affiliate network, will pay £690,000 in lieu of a financial penalty and also repay £460,472 stolen by a number of players to fund their gambling.
The Commission investigation was prompted by reports from the UK police that revealed three customers used stolen funds to gamble between 2014 and 2016.
In its analysis, the Commission said Gamesys failed to appropriately scrutinise the transactions to identify the source of funds and to determine whether the levels of spending were consistent with their risk profile.
The regulator said that failure to apply enhanced due diligence and enhanced monitoring of these individuals place Gamesys in breach of Regulation 14 of anti-money laundering controls
Gamesys was also found to have ultimately failed to both establish and maintain appropriate risk sensitive policies and procedures, as required by the 2007 regulations.
In addition, the Commission ruled that Gamesys did not have effective social responsibility interactions with the three customers in question, as set out in Social Responsibility Code Provision 3.4.1.
According to the regulator, Gamesys acknowledged its shortcomings and that it failed to comply with licence requirements at the time. Gamesys has admitted to not ensuring sufficient customer interaction was taking place when players were potentially displaying signs of problem gambling.
The Commission noted that the operator identified and flagged the failings itself.
Richard Watson, executive director of the Gambling Commission, said: “It is vital that operators understand their customers - track their online gambling and step in quickly when they suspect someone is suffering from gambling harm.
“These key steps and processes ensure they meet both their anti-money laundering and social responsibility obligations for all customers.
“Gamesys’ approach resulted in a variety of failings and saw stolen money flowing through the business – with customers being put at risk of gambling related harm.”