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The Source of funds for 10 customers were left unidentified by UK’s Victoria Gate Casino, resulting in a £450,000 fine.
Victoria Gate Casino, the Leeds-based casino is facing regulatory action due to AML failures and has been ordered to pay a fine worth £450,000 (USD 613K), announced the UK Gambling Commission on Wednesday.
The casino, which trades as Global Gaming Ventures, will be paying the fine as part of a regulatory settlement agreed with the Gambling Commission. According to the UK GC, the casino failed to identify and monitor customers associated with a high risk of money laundering and gambling-related harm.
“These failings were identified as part of our ongoing drive to raise standards across the whole gambling industry,” stated Helen Venn, the Gambling Commission’s Executive Director. “All operators should be very aware that we will not hesitate to take action against those who fail to follow rules that are in place to make gambling safer and prevent it from being a source of crime.”
The investigation was initiated back in July 2019, during which the UK GC analysed the activities of 10 customers following concerns identified at a compliance assessment. Results revealed that VGC had failed to comply with AML regulations and implement safer gambling policies and procedures.
Global watchdogs have mandated KYC and AML verification regulations on the gambling sector, similar to as imposed on the financial services sector. For the purpose of AML compliance, gambling and online gaming platforms are advised to opt for a risk-based approach to keep high-risk customers under close monitoring.
“VGC cooperated with our inquiries throughout the course of our investigation and has accepted that the implementation of its policies and procedures in respect of AML and safer gambling were not effective,” revealed the regulatory body in a statement. The casino has accepted that it failed to act in accordance with the conditions of its operating licence between January 2017 and July 2019.
The UK GC highlighted two particular instances where the casino failed to comply. One customer incurred losses of £275,000 over 22 months before they were asked to identify their source of funds. Another customer was permitted to gamble through, despite being requested by the casino to submit their source of funds.