White Label Provider TGP To Pay Six-Figure UK Penalty

April 5, 2023
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The UK Gambling Commission has assessed white label operator TGP Europe £316,250 over a series of anti-money laundering and social responsibility failings.

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The UK Gambling Commission has assessed white label operator TGP Europe £316,250 over a series of anti-money laundering and social responsibility failings.

The regulator said this morning (April 5) that a series of compliance failures had occurred between early 2020 and as recently as August 2022.

TGP runs 19 websites on behalf of international partners, but the Gambling Commission did not specify at which operators the failures had occurred. As a white label provider, TGP assumes responsibility for any and all compliance failures at the gambling companies it provides services for.

Failings included allowing a customer to gamble after hitting multiple safer gambling alerts with intervention, said the regulator.

Companies also relied on automated interactions rather than human intervention when safer gambling alerts were triggered and did not assess the effectiveness of those interactions or consider next steps, said the commission.

Failings around AML included the lack of a customer risk assessment, with the regulator highlighting particular risks around fake documents and diligence over large and complex transactions.

A lack of assessing risks around supplier relationships and “having ineffective policies and procedures in relation to due diligence undertaken prior to white label agreements” were also highlighted by the regulator.

New conditions have been added to TGP Europe’s licence, which will require it to carry out thorough due diligence checks. The company has also received an official warning.

The use of white label arrangements to allow operators to access the UK market without obtaining a licence themselves has been criticised by politicians and campaigners.

Isle of Man-based TGP has run into controversy as the white label operator for Asia-focused companies that would otherwise not be eligible for Premier League sponsorships due to the lack of a UK licence.

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