The UK Gambling Commission has fined online gambling operator Smarkets £630,000 (€743,243) following an investigation which found anti-money laundering (AML) failures and social responsibility.
According to the Gambling Commission’s statement, Smarkets allowed customers to gamble without providing sufficient evidence regarding the source of funds. The company has also not identified customers potentially susceptible to gambling harms.
The Commission has issued a formal warning to the company which must also undergo an audit to ensure that the correct anti-money laundering and social responsibility protocols are in place and are being followed by Smarkets staff .
The investigation revealed that a customer was allowed to deposit £395,000 (€466,036) over a four-month period without providing details of the source of the funds. Meanwhile, another client transferred large sums of money between bank accounts and user accounts without any controls being implemented.
Speaking about the findings of the investigation, Sarah Gardner, Deputy Chief Executive of the Commission, said:
“This case has been identified through compliance checks and once again highlights 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.”
Earlier this month, online operator LeoVegas was fined £1.32million for failings in social responsibility and anti-money laundering.