Pre-Christmas warning
The United Kingdom Gambling Commission (UKGC) has issued a warning to licensed operators over their anti-money laundering compliance.
The UKGC has made it clear that there will be major consequences for operators in violation of the new anti-money laundering compliance standards. On January 10, 2020, the latest iteration of the European Union Anti-Money Laundering Directive will come into effect.
there will be consequences for operators in violation of the anti-money laundering compliance standards
On the same day, the UKGC will publish the latest edition of its guide for casino operators, titled Prevention of Money Laundering and Combatting the Financing of Terrorism. This covers both retail and online casinos. As soon as this guide has been published, the new rules come into place.
Therefore, operators must be fully aware of the latest changes and ready to implement them immediately.
Some of the new changes
New changes will include minimizing anti-money laundering risks when new products, technology, or business practices are launched. There will also need to be specific controls and policies in place for ensuring the implementation of these rules, as well as making ensuring staff receive sufficient training.
Of course, the UKGC did admit that implementing policy changes can often take some time. However, it still wants all operators to act promptly and introduce the new changes with sufficient urgency.
The crackdown has already begun
Throughout 2019, the UKGC clamped down on operators that were not up to scratch with their anti-money laundering policies. This includes notable operators such as Gamesys, the Kindred Group, and Betfred.
Betfred did not comply with the appropriate anti-money laundering measures
It was on October 10 that Betfred received a fine of £322,000 ($417,000) from the UKGC over its anti-money laundering compliance failings. Betfred admitted that there were shortcomings and that it would be collaborating on the issue with the UKGC.
The key flashpoint in the Betfred case related to an incident that happened in 2017. This saw a customer deposit £210,000 ($272,000), losing £140,000 ($181,000). It later turned out that this money had been stolen by the customer and that Betfred did not comply with the appropriate anti-money laundering measures within 12 days of this transaction.