Author: Nicola Sharp 11 January 2018
Five online casino companies could lose their licences to operate, after the Gambling Commission warned they were not doing enough to stop themselves being used by money launderers.
The Commission, which regulates the industry, has written to 17 online casino companies to highlight the “serious nature” of its findings on their controls against money laundering, terrorist financing and problem gambling. It has said it is already considering a licence review for five of the firms, whose money laundering controls were the worst.
A licence review could result in the casino companies’ permission to operate in the UK being revoked.
In its letter to firms in the sector, the commission said that companies had hired unqualified money laundering reporting officers with little or no knowledge of “what constitutes money laundering” and were not reporting enough information about suspicious activity to law enforcement agencies.
Online casinos may be a rapidly developing business sector that can provide attractive earnings for those who run them. But, just like any other business that attracts large amounts of finance, such companies cannot afford to cut corners when it comes to either protecting themselves against money laundering or ensuring the relevant authorities are alerted to it.
If they are unsure of how to manage the threat of money laundering, they have to take advice from those who can. Failing to introduce the correct preventative measures and reporting procedures is a gamble that no one should be taking.
Read our article: MAKING SURE YOU DO ENOUGH TO PREVENT MONEY LAUNDERING
Nicola is known for her fraud, civil recovery, arbitration and business crime expertise, her experience of leading the largest financial disputes and multinational investigations and her skills in devising preventative measures and conducting internal investigations for corporates.