British regulator takes action against three operators

The three operators have been fined for AML and protection failings.
The three operators have been fined for AML and protection failings.

The Gambling Commission has announced action against BGO Entertainment, GAN Plc and NetBet Enterprises.

UK.- The Gambling Commission has reviewed the licences of three gaming operators after a number of reported failures on player protection and anti-money laundering controls.

The regulator has added new conditions to the licences of  BGO and Gan PLC, while all three must improve procedures and make payments that will go to the National Strategy to Reduce Gambling Harms.  

BGO was found to have systemic failings in its social responsibility and AML controls, affecting customers on its online casino properties. It failed to carry out “enhanced due diligence” on its top 250 customers, a condition under UK Money Laundering Regulations of 2017.

It also kept inadequate records of customer interactions and responsibility checks between 25 September 2018 and 23 March 2020.

The UKGC said BGO has carried out no source of funding checks on a customer that deposited £100,000 and lost £65,000 in seven days despite knowing the customer had a salary of under £20,000. The operator must now pay £2m.

Meanwhile, it found that white-label provider GAN PLC had failed to meet four conditions on social responsibility, risk assessment and AML provisions between August 2018 and September 2019.

It found that it accepted bank statements from a customer under a different name and undertook no regular assessment of AML controls. GAN must pay £146,000 

Finally, the UKGC found that NetBet enforced inadequate AML and responsible gambling controls and procedures.

It failed to carry out suitable Enhanced Due Diligence checks on at-risk customers, and in some cases, carried out no EDD checks at all.

Staff were found to have had no comprehensive training on AML and customer care. The operator has been ordered to pay £748,000.  

Gambling Commission executive director Richard Watson said: “Licensees must protect consumers from harm and treat them fairly.

“Our recent investigations uncovered a variety of consumer protection and anti-money laundering failings at each of these three operators and as a result we are using a range of enforcement tools against them. 

“We will continue to crack down on failing operators through our tough and proactive compliance and enforcement work.” 

The Gambling Commission has recently called on the UK’s financial services sector to help tackle gambling-related harm.

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