UK Gambling Commission Imposes £6 Million Penalty for Money Laundering Violations

UK Gambling Commission Imposes £6 Million Penalty for Money Laundering Violations

The UK Gambling Commission (UKGC) has handed In Touch Games a substantial fine for neglecting local social responsibility and anti-money laundering (AML) regulations.

In Touch Games, known for their array of online gambling platforms including bonusboss.co.uk, cashmo.co.uk, drslot.co.uk, jammymonkey.com, and slotfactory.com, failed to meet standards in a compliance assessment conducted in March 2022. The commission alleged that the operator's platforms did not provide adequate measures to prevent gambling-related harm and fraud.

The Missteps of In Touch

The UKGC pointed fingers at In Touch for multiple oversights, such as a case where the operator did not interact with a customer until seven weeks after they were flagged for necessary attention. This customer exhibited erratic play patterns and extended gambling sessions, signs often associated with problem gambling.

In another instance, In Touch failed to scrutinize the income of a player who had been flagged for increased spending and gambling during unusual hours. The player claimed a monthly income of £6,000, a figure the operator accepted without further verification.

Additionally, In Touch was criticized for inadequate AML measures. The commission noted that the operator had neglected several potential risk factors in their AML and CTF risk assessment, including customers who were beneficiaries of life insurance policies, had links to high-risk markets, or were politically exposed persons (PEPs) or PEP relatives.

Moreover, In Touch lacked sufficient precautions to address these risk factors and failed to adhere to the UKGC's AML and CTF risk assessment or guidance. In addition, the operator struggled to implement its own policies effectively—for example, failing to verify the source of income of customers who had deposited and lost over £10,000 annually, despite having a policy to do so.

The Heavy Price of Repeated Failings

The UKGC meted out a £6.1 million fine to In Touch Games due to their continuing shortcomings. This penalty is not a first for the gambling company; in 2019 and 2021, In Touch was compelled to pay fines of £4.2 million and £2.7 million, respectively, due to similar transgressions.

Kay Roberts, the UKGC's executive director of operations, condemned the company's infractions, stating, "We are aware of In Touch's previous transgressions and expected to witness notable improvements during the compliance assessment. While there were improvements in certain areas, the overall efforts were still insufficient."

Roberts made it clear, "This £6.1m fine signifies that we will implement progressively escalating enforcement action where failures are repeated, and all licensees must take heed of this message."

In September 2022, the UKGC imposed a similar fine on Betfred for similar regulatory breaches.

1. The UK Gambling Commission (UKGC) imposed a significant fine on In Touch Games for disregarding local social responsibility and anti-money laundering (AML) regulations.
2. In Touch Games, well-known for their online gambling platforms, failed to meet standards during a compliance assessment conducted in March 2022.
3. The commission found that the operator's platforms did not offer adequate measures to prevent gambling-related harm and fraud.
4. The UKGC criticized In Touch for neglecting a customer for seven weeks despite flagging signs of problem gambling.
5. The operator also failed to scrutinize the income of a player who showed increased spending and gambling during unusual hours.
6. In Touch was reprimanded for inadequate AML measures, as they overlooked several potential risk factors in their assessment.
7. The commission highlighted the operator's failure to adhere to the UKGC's AML and CTF risk assessment or guidance.
8. In Touch struggled to implement its own policies effectively, such as verifying the source of income of high-spending customers.
9. The UKGC fined In Touch Games £6.1 million due to repeated shortcomings.
10. Kay Roberts, the UKGC's executive director of operations, expressed disappointment with the company's infractions.
11. Roberts stated that the fine was a warning to all licensees regarding progressive enforcement action for repeated failures.
12. The UKGC also fined Betfred £6.1 million in September 2022 for similar regulatory breaches.
13. The online gambling industry must pay attention to these fines and implement stronger regulations, especially regarding responsible gambling and AML measures.
14. Personal finance and wealth management should take note of these developments, as they could affect people's investments in the industry.
15. Businesses in the finance, banking, and insurance sectors, as well as fintech, should monitor these trends closely to ensure compliance and avoid penalties.
16. Data and cloud computing companies could provide solutions to help operators improve their AML measures, while the increased fines could generate new deals and discounts in the tech sector. Additionally, education and self-development offerings could help operators improve their skills and enhance personal growth. Shopping for new platforms and casino-games, job search, career development, general news, crime and justice, and responsible gambling resources may also be relevant in this context.

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