10Bet Fined £620,000 by UK Gambling Commission for AML and Social Responsibility Failings
Blue Star Planet, trading as 10Bet, has been fined £620,000 by the UK Gambling Commission for failing to comply with AML and social responsibility regulations.
Blue Star Planet, trading as 10Bet, has been ordered to pay a £620,000 (€698,271/$746,716) settlement by the Great Britain Gambling Commission following a series of failings related to anti-money laundering (AML) and social responsibility. The investigation took place between November 2019 and June 2021 and uncovered several sections of the Licence Conditions and Codes of Practice (LCCP) which Blue Star had failed to comply with.
The Commission identified failings in Blue Star's implementation of AML policies, procedures and controls, as well as deficiencies in its responsible gambling policies, procedures, controls and practices and weaknesses in its reporting arrangements. Specifically, breaches were identified in reference to paragraphs 1, 2, and 3 of licence condition 12.1.1, which require compliance with the prevention of money laundering and terrorist financing.
For 12.1.1(1), the Commission found that Blue Star's assessment did not explicitly acknowledge certain high-risk factors or customer risks and was therefore deemed inadequate. Additionally, 12.1.1(2) was not complied with, as licensees must have appropriate policies, procedures and controls to prevent money laundering and terrorist financing. The Commission said that financial controls to automatically limit the amount customers could deposit were too high, and some players could deposit large amounts before satisfactory risk profiling could occur.
Lastly, 12.1.1(3) states licensees must keep their policies under review and update them as necessary. Breaches included some players being able to gamble at high velocity before automated restrictions were applied to their account, and in some cases, source of funds was not requested until a later stage of the business relationship with the operator.
The Commission also referenced a breach of paragraph 1 of licence condition 12.1.2, Anti-Money Laundering Measures for operators based in foreign jurisdictions, as a result of its failing in terms of licence condition 12.1.1.
In addition to AML failings, the Commission found Blue Star had failed to comply with paragraph 1b, 1c and 2 of the Social Responsibility Code Provision (SRCP) 3.4.1 on Customer Interaction. The regulator said Blue Star did not have dedicated compliance staff to monitor safer gambling alerts overnight, and some customers could hit several safer gambling triggers without risk assessments and interactions occurring in real time.
Furthermore, Blue Star did not implement high-velocity risk alerts, which allowed some customers to spend at high velocity without interactions in real time. The Commission added that financial risk alerts in place at the time of the assessment failed to give adequate consideration to average discretionary income data and failed to identify customers at the earliest opportunity.
The Commission ruled on the case, considering several aggravating factors, including the serious nature of the breaches, impact on licensing objectives, and the need to encourage compliance among other operators. It also took into account the extent of steps taken to remedy breaches, Blue Star's early recognition of failings, and its cooperation.
As part of the regulatory settlement, Blue Star agreed to pay the £620,000 settlement in lieu of a financial penalty, to be directed to social responsible causes, and a payment of £3,571.25 towards its own investigation costs. In addition, the facts of the case would be published.
This case highlights the importance of compliance with AML and social responsibility regulations in the gambling industry. Operators must ensure that their policies, procedures, and controls are in line with the LCCP and that they take adequate measures to prevent money laundering, terrorist financing, and gambling-related harm. The Commission's ruling emphasizes the seriousness of non-compliance and the need to take swift action to remedy any failings.