Paddy Power Betfair (PPB) has been issued a £2.2m by the Gambling Commission after an investigation found that the company had failed to protect consumers. The results of the investigation have been provided by the Commission, revealing that the company did not interact correctly with customers who showed signs of problem gambling as well as failing to carry out anti-money laundering checks.
Customer Protection Failure:
According to the Gambling Commission, PPB had two customers that were using the brand’s betting exchange and three that were gambling with the online site and retail options while using stolen funds.
PPB was found to have been in violation of anti-money laundering policies, not completing checks as they should. The Commission found that in 2016, two customers of the brand were allowed to gamble significant sums of money that was stolen within Betfair. One of those customers had stolen money from their employer which was a charitable organization. The settlement made by PPB will see the money returned to the charity.
In a press release…
Gambling Commission Executive Director, Richard Watson, stated: “As a result of Paddy Power Betfair’s failings significant amounts of stolen money flowed through their exchange and this is simply not acceptable. Operators have a duty to all of their customers to seek to prevent the proceeds of crime from being used in gambling.
“These failings all stem from one simple principle – operators must know their customer. If they know their customer and ask the right questions, then they place themselves in a strong position to meet their anti-money laundering and social responsibility obligations.”
Breach of Social Responsibility Code Provision 3.4.1(1):
With their investigation, the Gambling Commission found that the brand was in violation of the social responsibility code provision 3.4.1(1). This provision involves policies and procedures for customer interaction. The company was also found to be in violation of ordinary code provision 2.1.1, involving the Commission’s guidance on anti-money laundering.