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GC declares AML procedures “not fit for purpose”

The UK Gambling Commission has slammed the anti-money-laundering (AML) procedures and social responsibility protocols of its licensees in its Compliance and Enforcement report for 2020/21.

The regulator said: “The reasons for these failings are almost as concerning as the failings themselves.
“Our casework reveals that operators are either not making suitable resources available or are simply putting commercial objectives ahead of regulatory ones. This is simply unacceptable and will be seen as such by others in the industry who work hard to achieve compliance.”
The threshold for many operators’ checks was found to be far too high and was often based on a few key metrics rather than a fully holistic approach that could catch problem gambling at an early stage. In addition to this, many operators were found to have inadequate due diligence checks in place, plus an overreliance on third-party partners to monitor and carry out these critical due diligence checks.

In addition to these points, the report suggested that operators were more concerned about how their actions, in particular those regarding social responsibility, might be received by the press and public. Instead, operators’ focus should be on mitigating money laundering in the first place.
Affiliates working with iGaming brands need to make sure that they support safer gambling and other social responsibility programs, and push them as much as they push their offers.
With the UKGC looking closely at AML procedures and other key areas, it is the responsibility of affiliates to ensure that they work with brands and companies that are committed to creating a safe environment for their players.