The online gambling company Betfred have been forced to pay a total of £322,000 in costs due to failure to have the procedures in place to prevent money laundering from taking place on their website. The fine and fees were given to Petfre Ltd, who trade as Betfred, and they will make the payment after an investigation made by the UK Gambling Commission.
During the investigation, the UK Gambling Commission found that Petfre had failed to carry out the right ‘source of funds’ checks for one customer in November 2017. During a 12 day period, this customer had made deposits totalling £210,000 and during the same period had accumulated losses of £140,000.
The Commission found that for a customer to have deposited and lost this much during a 12 day period it is clear to see that Petfre did not complete the necessary procedures surrounding money laundering policies. They should not have allowed someone to deposit so much, or someone to lose so much, without asking the proper questions that they should do based on the ‘source of money’ rules that are in place.
The total fine given to Petfre is split into two. The first part of it is the £140,000 that they profited from this which the player lost. This is money to be paid back to the victim of the original crime, where the money came from to begin with. The second part is a fine of £182,000 and this is something that the company will pay to the ‘National Strategy to Reduce Gambling Harms’ fund which has been set up. This will allow further work to be done by them in an attempt to make gambling as safe as it can possibly be.
Money laundering is a crime that the UK Gambling Commission takes very seriously as they know that crime gangs target the gambling industry as a way of laundering money they have stolen. This payment that Petfre have had to make after this case will no doubt serve as a warning to others to ensure that their money laundering procedures are up to speed and in place correctly, as well as having their staff trained to spot these issues and know what to do when they appear.