An online gambling operator will pay a £630,000 fine after a Gambling Commission investigation found a series of anti-money laundering and social responsibility failings.
Smarkets (Malta) Limited will pay the six-figure sum for the breaches, which allowed customers to gamble without adequate source of funds checks being carried out and failed to identify and interact with customers at risk of harm.
The operator has also received a formal warning and will be audited to ensure that it is effectively implementing its anti-money laundering and social responsibility policies, procedures and controls.
Examples of Smarkets failures include a client being allowed to deposit £395,000 over a four month period, without the proper source of verification of funds being carried out by Smarkets. Another example is that of an individual transferring significant levels of funds between bank accounts without any review or verification of the source of the funds.
Sarah Gardner, Deputy Chief Executive of the Commission, said: “This case has been identified through compliance checks and underlines once again how we will take action against gambling operators who are failing their customers. .
“Our investigation into Smarkets uncovered a variety of failures where customers were exposed to gambling risk.
“It was apparent that poor systems and processes were in place, which contributed to these breaches, driven by the company’s failure to effectively implement its policies and controls.”
Smarkets’ £630,000 fine is the latest in a series of enforcement cases brought by the Commission this year. Earlier this month, online operator LeoVegas was fined £1.32million for social responsibility and anti-money laundering failures.
Read the full Commission sanction
Last update: August 11, 2022