The UK Gambling Commission has ordered online gambling business Maple International Ventures Limited to pay £360,000 after uncovering multiple failures in its anti-money laundering (AML) and social responsibility controls. 

The operator, which runs the casino and betting website Lottomart.com, was found to have breached several of its licence conditions, particularly in relation to how it assessed risks associated with money laundering (ML) and terrorist financing (TF). 

According to a report on igamingtoday, the Gambling Commission’s review revealed “significant gaps in how Maple assesses risks related to organised crime and mule accounts”.  

In some instances, the company’s controls were so insufficient that a customer managed to evade detection simply by reversing their first and last names. 

Additionally, the Gambling Commission found that the operator failed to thoroughly verify customer identities before allowing accounts to exceed transaction limits.  

This oversight compromised critical customer due diligence measures that are essential for preventing illicit activities, said the report. 

John Pierce, Commission Director of Enforcement, said: “The cornerstone of every licensed business must be the proper implementation of effective policies and procedures aimed at making gambling crime free and safer. 

“This operator is now being held to account for anti-money laundering and social responsibility failings uncovered during a compliance assessment. 

“We would advise all operators to read the Maple International Ventures public statement and consider whether their own policies and procedures are both effective and are being successfully implemented,” reiterated Pierce. 

In the wake of the fine, the Gambling Commission has published additional good practice guidance for businesses operating within the sector. 

Gambling operators are encouraged to ask themselves the following questions and take remedial action where required: 

• Do you ensure that your ML/TF risk assessment is reviewed as necessary and at least annually? Does it include all of the risks relevant to the licensed activities? 

• Are your AML/CTF financial thresholds automated hard stops? When a threshold is reached, do you act swiftly enough to review accounts and mitigate risks or can customers continue to make significant transactions after they exceed the thresholds? 

• Do you have adequate checks (both automated and manual) to identify duplicate or linked accounts? Are your controls broad and robust enough to detect similarities or do they rely on certain key fields to be identical? Could a customer evade them by changing just one or two details? 

• Would your safer gambling controls identify all of the potential indicators of harm, as required by SRCP 3.4.3? 

• If you use an algorithm as part of your safer gambling controls, how have you chosen the levels which raise a flag or alert? How do you test that your algorithm is adequately detecting potential harms? 

• Can you demonstrate that you assess the impact of your customer interactions? 

• Do your safer gambling policies and procedures clearly define what you consider to be a strong indicator of harm? Do you have automated controls to act on these indicators in a timely manner? 

Maple International Ventures has agreed to a £360,000 payment in lieu of a financial penalty which will go to socially responsible causes.  

Read the Gambling Commission’s full public statement here. 

AML Compliance for Regulated Businesses 

At the Regulation & Compliance Office (RACO), we help regulated businesses undertake a review of their policies, controls, and procedures to ensure that they are compliant with AML regulations and, therefore, avoid any breaches. 

A review of this nature provides valuable insight into a business when performed correctly. Along with an overview of risk, these crucial assessments also highlight issues within the business, so it is essential to undertake a proper review. All of a company’s building blocks must be considered, including its staff, clients, operations, and finances. 

By working with RACO, a business can be assured that we will bring the required level of knowledge and expertise needed to perform the review, which adds value to the business and is not simply a box-ticking exercise. Our team can also provide a full range of services that include: 

• Consultancy. 

• Compliance Policies. 

• Training. 

• Handbooks. 

• Auditing. 

Our services focus on businesses’ anti-money laundering and regulatory requirements through the implementation of effective policies, procedures, training, and consultancy. We also provide continued monitoring of staff and ongoing training to ensure that everyone within a business is aware of the latest requirements and complies with their responsibilities. 

We offer a full range of services focused on ensuring businesses across all regulated sectors create, maintain and evidence their compliance with the requirements of their regulators and legislation. We work with businesses of all sizes, from the smaller high street or niche businesses to the large multi-office and multinationals. 

Get In Touch 

We adopt a sensible and pragmatic approach to fees, ensuring we are competitive and always add value. As necessary, we will agree on packaged services to control cost and enable clients to spread payments to alleviate cash flow, yet ensure services are provided when needed. 

If you want to discuss our services in more detail, contact us at 0203 985 8550, email us at info@regulationandcomplianceoffice.co.uk or complete an enquiry form.