By James Simons-
Five online casino companies face losing their license to operate after the Gambling Commission warned they were not doing enough to stop criminals using their websites to launder money.
The industry regulator has written to 17 online casino companies, highlighting the “serious nature” of its findings on their controls against money laundering, terrorist financing, and problem gambling.
The regulator is already considering a license review for five of the firms as a result of its early findings, which could result in their permission to operate in the UK being revoked. The identity of the casino firms have not been released, but The Eye Of Media.Com has sent a request for the identity of the casinos to be released in the interest of the public.
In a letter to firms in the sector, the commission said it had identified failings in money-laundering controls and also in social responsibility provisions designed to protect problem gamblers.
The letter sets out how the Gambling Commission expect operators to review all of their processes aimed at tackling money laundering and meeting their social responsibility obligations.
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The regulator said it had conducted a thematic review of the sector to consider how well operators are meeting their current obligations. ”Due to the serious nature of our findings, we have already begun investigations into 17 online operators, and are considering whether five of these require a license review, the industry regulator said.
Sarah Harrison, Gambling Commission Chief Executive, said: “It is vital that the gambling industry takes its duty to protect consumers and keep crime out of gambling seriously. The Gambling Commission’s new strategy sets out our vision for a fairer and safer gambling market. The action we are taking to examine online casino operators’ compliance with money laundering and customer interaction requirements is just one example of how we will be relentless in turning that vision into reality. ”
“As the online sector continues to grow, and now accounts for a third of the British gambling market, it is right that we maintain a sharp focus on online gambling. That is why in addition to our work on compliance among online casino operators, we have also been conducting a wide-ranging review of online gambling looking at how the market has evolved and to identify where further action can be taken to make gambling fairer and safer for consumers.”
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Its letter stated that companies were hiring money laundering reporting officers with no formal qualifications who were “unable to provide suitable explanations as to what constitutes money laundering”. “There was a general lack of understanding of how criminal spend could affect the business,” the commission said.
Online casinos are also failing in their duty to intervene when customers were showing signs of problem gambling, the commission said.
The regulator said it had spotted customers showing signs of problem gambling, but that “this behavior did not trigger a customer interaction” by the companies.
It also said firms were not submitting enough information about suspicious activity to law enforcement agencies such as the National Crime Agency. The finding exposes the high level of corruption being exhibited by casino managers who prioritize monetary profits over moral and legal conduct. One reason casino firms had not submitted enough information to the crime agency about suspicious activity may have been because many firms are benefiting financially from those suspicious activities. Managers of the firms in question ought to all be held to account for their scandalous operations which is tantamount to a crime if sufficient evidence where available to prove this. Either way, the silence of fat cat bosses to expose criminal activity on their website is a travesty that calls for severe punishment.
The commission has told the casino firms to improve their measures to protect customers and prevent money laundering, warning it may review whether five of the 17 operators should have their license withdrawn. Casino firms make an astronomic amount of money at the expense of addictive gamblers, many of whom spend a fortune hoping to double or triple their money through a series of gambling games.
Labour’s deputy leader, Tom Watson, who last year launched a party review of gambling policy, said:
“This serious warning shows many online gambling companies acting as if money laundering and gambling addiction being facilitated on their platforms aren’t their problem.
“The Gambling Commission is right to demand immediate improvement. No firm that fails to take its responsibilities seriously should be allowed to hold a licence.”
The regulator’s chief executive, Sarah Harrison, said: “It is vital that the gambling industry takes its duty to protect consumers and keep crime out of gambling seriously.
“The Gambling Commission’s new strategy sets out our vision for a fairer and safer gambling market.
“The action we are taking to examine online casino operators’ compliance with money laundering and customer interaction requirements is just one example of how we will be relentless in turning that vision into reality.”
She said the commission was also looking at the online market, which accounts for a third of the UK gambling industry.
The Remote Gambling Association, the trade body for online gambling firms, said: “Keeping crime out of gambling is one of the three licensing objectives and if the commission has identified failings in this area then it must take action.
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“It would be wrong to prejudge the outcome of their investigations, but we would obviously want to work with them to raise standards wherever necessary.”