UKGC fines Smarkets $760K+ for anti-money laundering and social responsibility failings

After an investigation carried out by the UK Gambling Commission, which revealed a series of anti-money laundering and social responsibility failings, gambling operator Smarkets (Malta) Limited will pay a financial penalty of GBP 630,000 (over $760,000). 

The six-figure sum comes as the company allowed customers to gamble without an adequate source of funds checks being carried out, and after it failed to identify and interact with customers at risk of experiencing harm. 

The operator has also received a formal warning and will undergo an audit to ensure it is effectively implementing its anti-money laundering and social responsibility policies, procedures and controls. 

Examples of the failings by Smarkets include one customer being allowed to deposit GBP 395,000 ($434,602) in a four-month period, without the appropriate source of funds checks. Another example is of an individual transferring significant levels of funds between bank accounts without scrutiny or source of funds checks occurring.

Smarkets fined £630,000 by Gambling Commission https://t.co/isCwpfyNfg

— Gambling Commission (@GamRegGB) August 11, 2022

Sarah Gardner, Commission Deputy CEO, said: “This case was identified through compliance checks and once again highlights how we will take action against gambling operators who fail their customers. Our investigation into Smarkets unearthed a variety of failures where customers were put at risk of gambling harm."

“It was obvious that poor systems and processes were in place which contributed to these breaches, driven by the company's failure to effectively implement its policies and controls," Gardner added.

The GBP 630,000 Smarkets fine is the latest in a string of enforcement cases led by the Commission this year. Earlier this month, online operator LeoVegas was fined GBP 1.32 million ($1.5 million) for social responsibility and anti-money laundering failings.