Bet365 to Pay £582,120 for Anti-Money Laundering and Social Responsibility Failures
Bet365, a prominent online gambling company, has been fined £582,120 due to its failure to uphold anti-money laundering and social responsibility requirements. Hillside (UK Gaming) ENC, the licensee for Bet365’s bingo and casino products, will pay £343,035, while Hillside (UK Sports) ENC, the licensee for betting, will pay £239,085. The entire fine amount will be allocated to socially responsible causes as part of a regulatory settlement with the Commission.
Unveiling Compliance Failures
The shortcomings of Bet365 were uncovered during a compliance assessment conducted by the Commission in March 2022. The evaluation revealed various social responsibility and anti-money laundering failures that raised concerns.
Social Responsibility Failures
One of the social responsibility failures identified was the lack of tailored interactions with customers based on their specific needs or potential harm. As a result, the interactions lacked meaning and effectiveness. Additionally, Bet365’s Early Risk Detection System failed to demonstrate its ability to understand the impact of individual interactions on a customer’s behavior and whether further action was necessary. Moreover, Bet365’s evaluation process was ineffective in determining if customers had read and comprehended the information and advice provided during the interactions.
Anti-Money Laundering Failures
The anti-money laundering failures of Bet365 were also a cause for concern. The company had an enhanced customer due diligence and know your customer triggers that proved to be ineffective in managing money laundering risks. Furthermore, Bet365 did not perform financial sanctions checks on new customers before their first deposits. The company relied heavily on customers’ self-verification of know your customer information, such as identification documents, instead of conducting independent verification checks. Lastly, Bet365’s procedure document lacked sufficient detail regarding the identification of “at-risk” and “not-at-risk” customers for risk profiling.
Regulatory Action and Expectations
Kay Roberts, the Executive Director of Operations at the UKGC, acknowledged that while the policy and procedural failings of Bet365 might not have been as severe as those of other gambling businesses, they were still unacceptable. The UKGC holds operators to high standards in terms of maintaining a safe, fair, and crime-free gambling environment, and will not hesitate to take action against any failings. Bet365 has been warned that any repeat of these failures will result in further regulatory action.
Conclusion
Bet365’s recent fine serves as a reminder to all gambling operators to prioritize anti-money laundering measures and social responsibility. The Commission’s regulatory settlement and allocation of the fine to socially responsible causes demonstrate the importance of upholding these standards. Operators must continuously review and enhance their procedures to ensure the safety and well-being of their customers.