UKGC Tells Online Gambling Operators 'Be More Vigilant'

Published Tuesday, September 08, 2015 -
UKGC Tells Online Gambling Operators 'Be More Vigilant'

Security for money laundering activity needs to be addressed said the United Kingdom’s Gambling Commission recently. The Commission is telling operators to tighten anti-money laundering security after it recently completed a probe into alleged weaknesses in anti-money laundering measures at the Grosvenor Casinos. The UKGC probed the business of Meccabingo and an employee who is awaiting sentencing after recently pleading guilty to defrauding a six-figure sum from the company. This came after the conviction of Da Feng Ding, a former customer of the Rank owned group. Rank has admitted there are shortcomings in its security and “failures to apply the lessons learnt from previous scrutiny”.

Da Feng Ding spent a large amount of cash over a period from 2008 to 2011, but the UKGC found that Grosvenor had failed to take effective or timely action to verify the identity of the customer had failed to take a sufficiently robust and risk-based approach in establishing the customer’s source of funds and neglected to take appropriate action when Grosvenor staff had suspicions about the customer’s transactions plus the casino failed to keep adequate records.

The UKGC also said,  “The Commission has agreed the operator’s remedial actions including a third party audit of its revised anti-money laundering arrangements and the surrender of an estimated £950,000 (€1.32m/$1.47m) profits that resulted from these shortcomings, to be spent for agreed socially responsible purposes.”

In the other case involving Rank the unnamed customer was allowed to gamble a six-figure sum without Rank Digital undertaking sufficient checks or adequate monitoring deeming the casino not socially responsible. A statement from the UKGC read, “The Commission is bringing to the attention of all operators the need to take a critical approach to assessing their own policies and procedures and, crucially, whether they are being followed and remain fit for purpose, to avoid generating a false sense of security,”




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