Key Highlights
- Betfred fined £825,000 for AML breaches by UKGC.
- This comes two years after a £3.25 million settlement for similar violations.
- The company must undergo an independent audit to assess its controls.
- UKGC found shortcomings in identifying and managing money laundering risks linked to B3 gaming machines.
Betfred Fined Again for AML Breaches
In a latest blow to the gambling industry, iconic British betting brand Betfred has been fined £825,000 by the UK’s Gambling Commission (UKGC) for repeat anti-money laundering (AML) failures. Barely two years after paying a massive £3.25 million settlement for breaching AML protocols, this latest sanction underscores the company’s ongoing struggles with compliance.
Recurring Issues and Penalties
The UKGC’s investigation revealed that Betfred has failed to adequately identify and manage money laundering risks linked to customer activity on B3 gaming machines in some of its 1,300 betting shops, primarily concentrated in England’s North-West. Despite using machine alerts and daily reports, the operator was unable to assess overall customer spend or associated financial crime risks effectively.
According to the UKGC press statement, the company also lacked effective policies for identifying customers subject to financial sanctions and set its thresholds for source-of-income checks at levels that were not sufficiently risk-based. This has led to a formal warning and an independent audit being issued by the commission to ensure the effectiveness of Betfred’s AML and safer gambling controls.
Company Response and Previous Settlements
A Betfred spokesperson responded, stating, “Following a review of our UK-based betting shops by the Gambling Commission, we have further strengthened our Anti-Money Laundering and Social Responsibility policies. During the review, the Commission found no evidence of criminal spend in our shops.” The company also emphasized its commitment to ensuring a safe gambling experience for all customers.
Interestingly, this latest fine comes on the heels of Betfred co-Founder and Chair Fred Done’s recent appeal to the Labour government not to hike in-person gambling taxes. Last week, he warned that such measures could lead to mass closures of his company’s and other High Street betting shops. However, it seems these warnings might have backfired as the latest AML sanctions highlight the ongoing compliance issues at Betfred.
Regulatory Concerns and Future Implications
The UKGC’s John Pierce highlighted that while the identified failings were predominantly technical breaches rather than arising from specific customer examples, they were still unacceptable. “We fully acknowledge the improvements the operator has already made since these issues were identified,” he said. “And the independent audit will be key to confirming these changes are sustained so that the operator continues to be fully compliant with social responsibility and anti-money laundering requirements.”
These repeated AML failures have significant implications for Betfred’s future. The company, now headquartered in Warrington, has been under scrutiny from regulators for its compliance practices. The latest fine, combined with previous penalties, may lead to increased pressure on the betting giant to reform and improve its systems to avoid further sanctions.
As the industry continues to grapple with stricter regulations, companies like Betfred face an ongoing challenge in ensuring they meet all legal requirements while maintaining their operations. Whether these latest fines will prompt a more fundamental overhaul of their compliance procedures remains to be seen.
