UK Gambling Watchdog Fines iGaming Firm Greentube £685,000, Cites Anti-Money Laundering Failures

  • The £685,000 penalty was also for social responsibility failures
  • Subsidiaries and were the culprits
  • A politically exposed person gambled £1,000 before their source of wealth got checked
  • UKGC exec warned of firm action against operators not meeting British consumer standards
UKGC logo on a smartphone
Novamatic subsidiary Greentube has to pony up £685,000 after the UKGC found it guilty of social responsibility and anti-money laundering failures. [Image:]

Multiple compliance failures

The UK Gambling Commission (UKGC) has ordered Novamatic subsidiary Greentube Alderney Limited to pay a £685,000 ($912,180) penalty, citing social responsibility and anti-money laundering failures. 

The UK gambling watchdog took to Twitter December 2 to share news of its regulatory action against the Vienna-headquartered global iGaming service provider:

The ruling comes on the back of an investigation the UKGC launched December 2020. The Commission’s probe discovered that Greentube subsidiaries and had failings in money laundering and player protection safeguards.

According to the UKGC’s report, between December 2019 and November 2020, Greentube fell foul of complying with multiple Licence Conditions and Codes of Practice (LCCP) requirements set by the watchdog. For this, the Commission has ordered Greentube to undergo an extensive third-party audit.

Source of wealth checks lax

In a press release Thursday, the UKGC said the gaming service provider had, under the strictures of the LCCP, failed to comply with “money laundering procedures, transfer of funds, record keeping, and ensuring safe interaction with customers.”

politically exposed person […] was able to gamble up to a £1,000 deposit limit”

Under Greentube’s anti-money laundering failings, the UKGC flagged an occasion in which a “politically exposed person […] was able to gamble up to a £1,000 ($1331.65) deposit limit before source of wealth checks were carried out.” This is a requirement under Money Laundering Regulations 2017.

In addition, the UKGC said Greentube had neglected to submit six suspicious activity reports (SARs) to the National Crime Agency. The submission of SARS is a requirement stipulated by the UK’s Proceeds of Crime Act 2002 and Terrorism Act 2000.

The regulatory body also stated that and did not meet multiple social responsibility code provisions, which are intended to identify individuals experiencing gambling harms and trigger customer care interventions.

Compliance “not optional”

The UKGC also published Greentube’s public statement. Among several acknowledgements, Greentube accepted that its customer interactions were “overly reliant on its £1,000 30-day net loss threshold to identify potential signs of problematic gambling.”

Last month the UKGC took another online casino subsidiary to task. After allegations that Flutter-owned Sky Vegas offered free spins to gambling addicts, the regulatory body announced it was launching an investigation.

The UKGC’s executive director Helen Venn didn’t mince her words, saying compliance with Commission rules in order to keep gambling free of crime “is not optional.”

“We will always take firm action against those operators who fail to meet the high standards we expect for consumers in Britain,” Venn warned.

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