The United Kingdom gambling watchdogs have reached a £1.3 million payment with licensee White Hat Gaming. This was after its approach to SR (social responsibility) and AML (anti-money laundering) was discovered below par.

On Thursday, the UKGC (UK Gambling Commission) disclosed the settlement regarding its procedures and poor policies for managing and identifying users considered to be at a higher risk for money laundering and problem gambling.

The flaws involved 7 clients’ accounts at 4 White Hat websites – 21Casino.com, Grandivy.com Dreamvegas.com, and Hellocasino.com – that came up after UKGC compliance assessment in March 2019.

The next January, the UKGC alerted White Hat that the watchdog had started a review of its remote operating license.

For the first case, a client lost £70.000 within 3 months in 2018. After, White Hat made a client intelligence report that stated that the client was sufficiently comfortable to absorb his losses.

On the other hand, White Hat didn’t lock the account of the customer while it was ascertaining their source of funds (SOF). This move was acknowledged by the company was wrong.

For the other two cases, one client lost £50,000 in 6 hours while another client lost £85,500 in a mere 85 minutes. Although White Hat intervened in both cases, the UKGC determined that these interventions “were not delivered effectively in accordance with the social responsibility code.”

Regarding their AML shortcomings, White Hat permitted one client to lose £70,000 over a 2 year period. This was in spite of the company stating they had ‘limited knowledge’ of the client’s source of funds.

Another case showed that White Hat requested evidence of SOF from a client who lost £55,000 in 2 years. They failed to properly verify the bank statements given by the customer.

According to the UKGC they disclosed that White Hat cooperated with its investigation. They also said there was no evidence that suggests the breaches were intentionally committed. Also, White Hat agreed to several improved measures for customer protection. This includes ‘backstop limits’ to automatically stop customers from gambling further after some SR and AML triggers have been met.

The settlement of White Hat consists of a fine of £1.33 million and about £10,000 to balance the UKGC’s investigation costs. The body says the funds will be used for meeting its National Strategy to Reduce Gambling Harms.

Source: https://calvinayre.com/2021/01/28/business/uk-gambling-regulator-fines-white-hat-gaming-aml-shortcomings/

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