Recently, the Gambling Commission revealed another breach of regulations, including social responsibility and illegal acquisition of money on Paddy Power Betfair gambling exchange, and issued a £2.2 million penalty for failing to protect customers from gambling with stolen funds.
Further investigation has shown that PPB failed to properly intercommunicate with clients who are suffering from problem gambling, as well as to prevent anti-laundering practices.
'Flow of Stolen Cash':
In addition to two customers, who used the betting exchange, three more clients gambled using the "operator’s online presence and retail premises." Executive director at UKGC, Richard Watson commented:
"As a result of Paddy Power Betfair’s failings significant amounts of stolen money flowed through their exchange and this is simply not acceptable. Operators have a duty to all of their customers to seek to prevent the proceeds of crime from being used in gambling."
Not knowing your customer is the main prerequisite for errors in gambling, added Watson, and said that operators should always place themselves in a stronger position before meeting any anti-laundering obligations.
A Valuable Learning Experience For Operators:
According to the Gambling Commission’s public statement and regulatory settlement, Paddy Power Betfair failed to conduct procedures for customer interaction and act in accordance with the Agency’s guidance on money laundering.
Therefore, the penalty package consists of:
- £498,508 divestment of the monies received
- £1,717,121 payment in lieu of a financial penalty
Also, an extra payment of £50,045 counts towards the investigative costs.
Pursuant to the investigation, two customers were authorized to gamble stolen funds on PPB’s betting platform, Betfair, in 2016. It turned out, that one of the clients actually stole a substantial amount from his employer, a charity organization. The assets were eventually returned to charity, since the examination identified poor interacting with players who were showing signs of problem gambling on numerous occasions. UKGC has also announced further audits and advised all operators within the country to regularly check their systems.
Source: "Paddy Power Betfair to pay penalty package for social responsibility and money laundering failures on its gambling exchange". Gambling Commission. October 16, 2018.
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zuga 10/24/18, 07:10:41 AM
real question is whether this was a mistake on PPs part or not... one can argue they knew about it but didnt care. If they didnt know about it, then their due diligence and anti-fraud measures failed miserably. Either way fine is more than deserving..
JaniceJ 10/23/18, 10:10:20 PM
Unbelievable. To think that leading bingo operators would make such stupid mistakes.
budala 10/19/18, 07:10:46 AM