Betfred to pay £322,000 penalty for AML failings

The UK Gambling Commission (UKGC) has imposed a fine of £322,000 (€357,588) on online gaming operator Petfre, owner of the Betfred brand, for money laundering failures.

UKGC investigation was launched following information passed to the Commission regarding a customer that had been convicted of a £2m fraud, who it was said was spending stolen money through several operators.

The investigation found that the “operator failed to carry out adequate source of funds checks on a customer who deposited £210,000, and lost £140,000, of stolen money in a 12-day period in November 2017.” It was added that operator policies led the firm to request the source of funds of two occasions during the month in question, which were duly failed to be provided.

UKGC highlighted “clearly indicated failings in the effectiveness of Petfre’s anti-money laundering policies and procedures.” Betfred has since accepted responsibility for the weaknesses in its AML proceedings and has since taken steps to prevent further recurrences. The UKGC, in response to the investigation, outlined several considerations in order to determine an appropriate outcome.

As part of the settlement, Betfred has been ordered to pay £140,000 to the individual from whom the money was originally stolen and make a £182,000 payment in lieu of a financial penalty which will be spent accelerating delivery of the National Strategy to Reduce Gambling Harms. The company will also cover £15,168 in Gambling Commission investigation costs.