The Gambling Commission found that a convicted fraudster was investing stolen money through several gambling operators.
The case involves Petfre (Gibraltar) Limited, which is trading as Betfred and owner of a joint remote operating license.
The fraudster opened several accounts in a very short time. He was making big deposits and also experiencing big losses. He invested £ 210,000 over a 12-day period in November 2017 and lost £ 140,000.
The Gambling Commission in its statement said: “The management of this customer in relation to anti-money laundering raised significant concerns regarding the effectiveness of the policies and procedures that Petfre had in place, and its management of risks to the licensing objectives. Since this incident, Petfre has made improvements to its AML procedures to prevent a recurrence of the failings.”
The UKGC ordered the fine as it found that there were “clear failings in the effectiveness of Petfre’s policies and procedures”.
Last week, the UK Gambling Commission (UKGC) issued strict reminders to all licensed gambling and betting operators and asked them to make sure that consumers are not unnecessarily disadvantaged if the company decides to leave the market voluntarily or involuntarily.
In its statement the gambling regulator said that “one of the principles of our regulation is that gambling should be fair and open.”
“We expect license holders to: conduct their business with integrity; maintain adequate financial resources and have due regard to the interests of consumers and treat them fairly,” it added.