BetFred in Anti Money Laundering Failings

Petfre ( Gibraltar ) Limited who own and operate BetFred are the latest in a long line of UKGC licensed iGaming operators that have been found by the Gambling Commission to have failings in their anti money laundering procedures.  With the Gambling Commission announcing that Petfre ( Gibraltar ) Limited have been ordered to pay a ‘penalty package’ amounting to the sum of £322,000.

After an investigation carried out by the UKGC, it was subsequently found that BetFred failed to carry out adequate anti money laundering and source of wealth checks, on a customer that deposited in total £210,000 in November 2017. The deposits were made over a 12 day period, during which the customer proceeded to lose £140,000.

The Gambling Commission were of the view that there were clear failings identified on BetFred’s behalf, due to the customer being allowed to deposit  a significant sum in such a short space of time.

The penalty package that has been applied to the owners and operators of BetFred, Petfre ( Gibraltar ) Limited, require the company to reimburse to the customer in question their £140,000 losses. In addition, the UKGC have ordered that Petfre ( Gibraltar ) Limited make a donation of £182,000 to the UKGC’s National Strategy to Reduce Gambling Harms initiative.

Concluding their findings in this investigation, the UKGC stated: “Our investigation found, and Petfre accept, that there were weaknesses in its systems relating to how it managed this customer for anti-money laundering.”

Source of Wealth checks and other areas forming anti money laundering  regulations, are an area that over the past 18 months the UKGC have been ‘hot’ on ensuring the compliance of, with their licensed operators. Where failings have been identified, several operators have been subjected to ‘penalty packages’, with some totalling amounts in the seven figures bracket.

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