UK gambling: Paddy Power Betfair gets £2 million penalty over money laundering, KYC
17 Oct 2018

The Gambling Commission has penalised Paddy Power Betfair (PPB) for failing to conduct adequate anti-money laundering checks and protect customers, as well as for allowing clients to gamble ‘significant’ sums of stolen money on its betting exchange.

PPB will pay a penalty package of £2.2m, the Commission said, after an investigation unearthed compliance irregularities.

According to the findings, during 2016, two customers were allowed to gamble significant sums of stolen money on PPB’s betting exchange Betfair.

One of the customers stole the money from his employer, a charity. As part of this settlement the money will be returned to the charity.

Failings included not identifying and interacting with customers showing signs of problem gambling on numerous occasions and a lack of robust AML checks for both customers.

The AML and social responsibility failings included weaknesses in source of wealth and social responsibility checks, the regulator explained.

Richard Watson, Gambling Commission Executive Director, said: “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.

“These failings all stem from one simple principle – operators must know their customer. If they know their customer and ask the right questions then they place themselves in a strong position to meet their anti-money laundering and social responsibility obligations.”

Read more:

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