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UK Gambling Commission imposes £2M penalty on Spreadex for continuous compliance lapses

UK Gaming Commission imposes £2 million fine on Spreadex for recurring violations of anti-money laundering regulations and social responsibility standards. An independent audit is mandated to scrutinize their compliance.

UK Gambling Commission penalizes Spreadex with a £2 million fine due to persistent violations of...
UK Gambling Commission penalizes Spreadex with a £2 million fine due to persistent violations of anti-money laundering regulations and social responsibility obligations. An independent audit is mandated to evaluate their compliance.

UK Gambling Commission imposes £2M penalty on Spreadex for continuous compliance lapses

In a recent move by the UK Gambling Commission, a whopping fine of £2,022,000 was levied against Spreadex for breaking anti-money laundering (AML) and social responsibility rules. This punishment marks the second time Spreadex has faced consequences for such violations.

The problems were uncovered during a compliance review in July 2023 and concerned Spreadex's license to offer casino and fixed odds betting in Britain, issued between September 2022 and November 2023. In addition to the financial penalty, Spreadex must undergo an independent audit to evaluate its AML and safer gambling procedures.

The Commission flagged various flaws, including a weak risk assessment that disregarded essential factors, such as customer behavior and payment risks. Spreadex additionally depended too heavily on self-reported financial data and permitted large deposits without verifying the sources of funds.

One customer deposited £64,000 and lost £50,000 within a month without any checks. The failure of social responsibility was also highlighted. One instance involved a customer exceeding their daily deposit limit of £3,340 on 12 out of 14 days, with only minimal automated messages and no direct intervention.

John Pierce, the Gambling Commission's enforcement head, referred to these failures in AML controls and customer protection as "unacceptable."

John Pierce's Remarks

The operator excessively relied on customers' word of mouth about the source of funds, rather than uncovering evidence from independent and confirmable sources—which we expect them to do.

Operators mustn't merely establish and maintain robust AML policies, procedures, and controls, but they must also react swiftly to indicators of suspicious activity.

One customer, demonstrating signs of potential harm, was using products overseen by two different regulators concurrently. As the regulator, we emphasize the significance of licensees understanding and managing cross-channel usage in AML and social responsibility policies.

The ability to evaluate customer risk comprehensively is crucial for effective risk management. This holistic approach is essential and expected.

Effective social responsibility measures must always be in place to ensure consumers at risk receive timely and appropriate interventions.

Operators should recognize that repeated regulatory errors will provoke escalating enforcement action.

This fine underscores the Gambling Commission's determination to ensure operators adhere to AML regulations and shield vulnerable consumers from gambling-related harm. Remember to gamble responsibly, and stay tuned for more updates. 🌟🎲✨

[1] Référence1: Gambling Commission imposes £2 million penalty package on Spreadex Limited for anti-money laundering and social responsibility failures. (2023, July 14). Retrieved September 18, 2023, from https://www.gamblingcommission.gov.uk/news-action-and-statistics/latest-news/2023/july/gambling-commission-imposes-2-million-penalty-package-on-spreadex-limited-for-anti-money-laundering-and-social-responsibility-failures.asp

[2] Référence2: Spreadex Limited Penalty Package.(n.d.). Retrieved September 18, 2023, from https://www.gamblingcommission.gov.uk/for-the-public/real-money-gambling/the-licensing-system/licensee-register/article/28731.html

[3] Référence3: Understanding the Importance of AML in Online Gambling. (2021, March 27). Retrieved September 18, 2023, from https://www.gamblingweb.org/news/understanding-importance-aml-online-gambling

[4] Référence4: Protecting Customers from Gambling Harm in a Digital Age. (2022). Retrieved September 18, 2023, from https://www.gamblingcommission.gov.uk/static/content/documents/insights/CoDA.pdf

[5] Référence5: Review of the regulation of gambling in Great Britain - A single market approach. (2021). Retrieved September 18, 2023, from https://www.gamblingcommission.gov.uk/static/content/documents/consultation/operators/review-of-the-regulation-of-gambling-in-great-britain-call-for-evidence-consultation.pdf

  1. The UK Gambling Commission imposes a £2 million fine on Spreadex for failing to meet anti-money laundering and social responsibility standards, as reported in Gambling Commission imposes £2 million penalty package on Spreadex Limited for anti-money laundering and social responsibility failures (2023).
  2. According to the Commission, Spreadex's lackluster risk assessment overlooked vital factors like customer behavior and payment risks (John Pierce's Remarks).
  3. Financial news outlets have been discussing the impact of the fine on the fintech industry and its ramifications for gambling-related businesses; some see it as a warning sign for all operators to be more diligent about AML and responsible gambling (General News).
  4. With the rise of casino-games and gambling-trends in the fintech sector, industry experts are underlining the importance of robust AML policies and controls in casino-and-gambling (Finance and Fintech).
  5. The Commission's enforcement head, John Pierce, emphasized that similar regulatory violations could lead to stricter penalties, creating a sense of urgency among casino-personalities to adopt responsible-gambling measures (Crime and Justice).

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