Videoslots £2m UK Regulatory Settlement For AML, Social Responsibility Failures

June 15, 2023
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Videoslots will pay a £2m regulatory settlement over social responsibility and anti-money laundering failures in the UK that included allowing a customer to deposit and lose all of their savings and estimated earnings in just six months.

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Videoslots will pay a £2m regulatory settlement over social responsibility and anti-money laundering (AML) failures in the UK that included allowing a customer to deposit and lose all of their savings and estimated earnings in just six months.

Videoslots accepted the issues uncovered by the gambling regulator, according to the public statement released on June 15.

The failings in Videoslots’ implementation of AML policies, procedures and controls took place between March 2021 and April 2022.

The Malta-based operator's risk-based processes had “significant delays” when it came to its AML review or request for a source of funds following an AML trigger.

As a result, one customer hit several AML triggers and was still able to deposit £112,225.

Videoslots also did not have sufficient AML analysts to process the volumes of data or undertake the AML account reviews that were required to be performed in accordance with its AML policies and procedures, the commission said.

“There were examples where analysts did not properly implement the Licensee's policies and procedures in respect of AML, which allowed a number of high-risk customers to continue to gamble significant amounts,” according to the statement.

The social responsibility breaches, seven of which are listed in the statement, include not identifying players' risky behaviour “as early, or as well as they should have been”.

Videoslots also did not use restrictive measures such as forced deposit limits and play blocks as regularly as it could have and it did not carry out effective interactions with certain at-risk players.

“In some of the customer accounts reviewed, there were instances where, contrary to the Licensee's policy, affordability was not fully considered by responsible gambling analysts in allowing customers to continue to gamble,” according to the statement.

One customer which it failed to identify as at risk of harm had a self-declared income of between £60,000 and £80,000 and savings of between £20,000 and £50,000, but was able to deposit and lose £98,000 within six months.

The regulatory settlement penalty package of £2m consists of a payment in lieu of a financial penalty of around £1.5m, which will be directed towards socially responsible causes, and £11,308.00 will go towards the commission’s investigative costs. The rest will be divested.

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