ProgressPlay Limited is facing its second fine for AML and social responsibility failures following a Gambling Commission compliance assessment.
The gambling company will have to pay a £1 million fine after a Gambling Commission compliance assessment reveals failures in anti-money laundering (AML) and social responsibility procedures. ProgressPlay runs 134 websites and will now need to undertake a third-party audit to ensure its policies around AML and social responsibility are effective.
The AML failings included not conducting appropriate assessments or implementing the right controls to mitigate the risk of money laundering and terrorist financing. The Commission also found that ProgressPlay didn’t consider all risks associated with its business and didn’t examine relevant transactions with customers.
“Gambling businesses must have robust policies and procedures in place to protect consumers and ensure appropriate anti-money laundering controls are maintained,” said John Pierce, Director of Enforcement and Intelligence. “These measures must be actively implemented and regularly tested to confirm their effectiveness.
“This case marks the second time ProgressPlay Limited has been subject to enforcement action by the Gambling Commission. Its failure to meet AML obligations, along with the gaps identified in its social responsibility processes, are unacceptable. As part of the regulatory outcome, ProgressPlay is now required to undergo an independent third-party audit to assess the adequacy of its compliance arrangements across these areas.
“Operators should be in no doubt: repeated regulatory breaches will result in increasingly severe enforcement action. We urge all operators to examine the failings identified in this case and take proactive steps to strengthen their own systems and controls.”
Social responsibility in gambling is when companies have the mandate to monitor customers for the risk of potential gambling-related harm. It was found that ProgressPlay did not have adequate systems in place to track potential risk factors, or implement any relevant interventions.
For example, there was no customer interaction policy, meaning the company failed to adequately identify, act and evaluate customer behavior.
This is the second occasion ProgressPlay has faced enforcement action, with the previous incident taking place in 2022, where the operator was fined £175,718 for social responsibility and anti-money laundering failures. The latest fine comes after the Commission recently strengthened its processes for fining operators in breach of the rules.
Featured image: Midjourney
