Mr Green to Pay £3.75m for AML & Safety Failures
Operator penalised for significant anti-money laundering and social responsibility failings between 2020 and 2021.
Online gambling operator Mr Green Limited has been ordered to pay £3.75 million by the UK Gambling Commission for serious anti-money laundering and safer gambling failures. The investigation found the operator allowed customers to deposit large sums without adequate checks and failed to protect players exhibiting signs of harm.
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The UK Gambling Commission (UKGC) has ordered Mr Green Limited to make a payment of £3.75 million after an investigation revealed significant failings in its anti-money laundering (AML) and social responsibility controls.
The regulatory settlement, announced on 28 March 2023, follows a review that identified multiple breaches of licence conditions between May 2020 and October 2021. The operator, which trades as Mr Green, failed to adequately protect vulnerable customers and prevent potential money laundering.
Widespread AML and Safer Gambling Breaches
The UKGC investigation found systemic weaknesses in Mr Green's policies and procedures. The operator accepted that its AML risk assessments were insufficient, failing to fully account for risks such as terrorist financing and the use of mule accounts.
Key failings identified by the Commission include:
- Inadequate Due Diligence: Customers were able to deposit large sums of money without timely checks. In one case, a customer deposited £52,985 before the company performed enhanced due diligence.
- Failure to Verify Source of Funds: The operator placed undue reliance on open-source information and failed to properly verify customers' income. One customer deposited £73,535 in four months, with the company focusing on their company's net worth rather than personal salary or dividends.
- Ineffective Safer Gambling Triggers: The operator's systems failed to prevent high-velocity gambling. One customer was able to deposit and lose £14,902 in just 70 minutes without any intervention. Another new customer deposited £23,000 in 20 minutes.
- Poor Customer Interaction: Safer gambling interactions often consisted of generic emails that were not tailored to a customer's specific circumstances or level of risk.
- Failure to Link Accounts: Mr Green failed to identify that several customers held accounts with other brands within its wider group, some of whom had previous restrictions. This allowed them to open new accounts and gamble significant amounts before being identified.
Regulatory Action and Implications
As part of the regulatory settlement, Mr Green Limited will make a payment of £3.75 million in lieu of a financial penalty, which includes a divestment of £218,310.20. This money will be directed towards socially responsible purposes. The operator will also pay the Commission's costs for the investigation.
In addition to the financial penalty, Mr Green must adhere to new, stricter conditions on its operating licence. This includes appointing a board-level sponsor to oversee a 12-month action plan and commissioning an independent audit of its AML and safer gambling policies by 13 February 2024 to ensure they are being implemented effectively.
The UKGC noted that while its review found no direct evidence of criminal funds being spent with the operator, the failings created significant risks. The Commission cited the serious nature of the breaches and the fact that they were similar to previous industry cases as aggravating factors in its decision.
This action serves as a warning to all licensed operators to ensure their AML and safer gambling policies are not only fit for purpose but are also being implemented effectively to protect consumers and prevent crime.