UKGC Withholds AML Fine Data
Regulator says it cannot easily track how much money from anti-money laundering fines is sent to HM Treasury.
The UK Gambling Commission has withheld data on how much money from anti-money laundering fines it sends to the Treasury. In a Freedom of Information response, the regulator stated it would be too costly to retrieve the information as it is not stored in an extractable format. This lack of specific data makes it difficult to track the financial outcomes of penalties for one of the most serious types of regulatory breach.
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UKGC Cites Excessive Cost in Refusal to Disclose AML Fine Data
The UK Gambling Commission (UKGC) has withheld information on the specific amounts of money from anti-money laundering (AML) fines that are remitted to HM Treasury. In response to a Freedom of Information (FOI) request dated 1 August 2024, the regulator stated that retrieving the data would exceed the cost limits set out in the FOIA.
The Request and The Refusal
The request asked for a breakdown of the funds sent to the Treasury from fines issued for AML failings for each financial year from 2017/18 to 2023/24.
The UKGC confirmed that it holds information within the scope of the request but refused to provide it, invoking Section 12 of the Freedom of Information Act. This section allows public bodies to refuse requests where the cost of compliance would exceed £450, equivalent to 18 hours of staff time.
According to the Commission, the data is not stored in an "extractable format." It explained that regulatory fines often cover multiple breaches, such as both AML and social responsibility failings, within a single penalty package. To determine the specific portion of a fine attributable solely to AML, the UKGC would need to manually review large volumes of information from each individual case, a task it estimates would take longer than the 18-hour limit.
Why This Data Matters
Anti-money laundering controls are a critical part of gambling regulation, designed to prevent the industry from being used for criminal purposes. The size of financial penalties for AML breaches is a key indicator of the regulator's enforcement priorities and the severity with which it views these failings.
For consumers and industry observers, understanding where this money goes is a matter of transparency. Knowing how much is returned to the public purse via the Treasury, versus how much is directed to responsible gambling charities or used to cover investigation costs, provides a clearer picture of the financial consequences of regulatory action.
What the UKGC Does Disclose
The Commission's response clarified the process for handling financial penalties. After deducting its investigation costs, the UKGC can direct operators to pay the penalty to an identified benefactor or a nominated responsible gambling charity. Any remaining funds are paid into the government's Consolidated Fund, managed by HM Treasury.
While the UKGC's annual reports show the total sum due to be passed to the Consolidated Fund, they do not provide the granular breakdown requested. This refusal highlights a gap in the regulator's public data, making it difficult to analyse the financial outcomes of penalties for specific, serious breaches like AML failures.
Significance for Regulatory Transparency
The UKGC's inability to easily access and share this specific financial data raises questions about its internal data management. Without a clear, accessible breakdown, it is challenging for the public, policymakers, and researchers to assess the precise financial deterrent being applied for different types of regulatory breaches. The Commission noted that the requester could refine their request, but any new submission would be treated as a new enquiry.