Following an investigation mandated by the 2015 Gambling Act, Daub Alderney, an online gambling subsidiary of Stride Gaming PLC of London, recently was fined ₤7.1 million for failing to meet UK Gambling Commission rules and standards regarding money laundering and protection of vulnerable customers. UKGC Executive Director Richard Watson said, “This action is part of an ongoing investigation into the online casino sector. The operator’s standards did not match the protections required, and this fine reflects the seriousness of these lapses.”
The investigation found Daub Alderney consistently failed to monitor player interactions and engagement with its services; apply required customer due diligence checks across its network of online gambling websites; keep records and evidence of customer financial transactions; maintain an appropriate risk management and AML infrastructure; and provide staff with relevant anti-money-laundering and financial monitor transaction training.
In addition, the UKGC said it identified numerous source-of-fund violations regarding “enhanced customer due diligence” checks on Daub Alderney’s financial transactions. Also, UKGC said Daub Alderney’s social responsibility procedures were insufficient concerning identifying or reducing problem gambling risks.
The UKGC also required Daub Alderney to appoint a “Money Laundering Reporting Officer who holds a Personal Management License;” ensure that all levels of staff management complete an “outsourced anti-money-laundering training” program; and work with external auditors who will review the implementation and progress of Daub’s AML, risk and social responsibility infrastructures.
Stride Gaming officials told the UKGC in addition to paying the fine, the company will work to implement all of the requirements.
