Paddy Power Betfair has been fined £2.2m by the UK’s Gambling Commission for failing to protect customers and stop stolen money being gambled.
A Gambling Commission investigation revealed that Paddy Power Betfair failed to adequately interact with customers who were displaying signs of problem gambling and failed to adequately carry out anti-money laundering checks.
Two of the customers were using PPB’s betting exchange and a further three were gambling using the operator’s online presence and retail premises.
Richard Watson, executive director of the Gambling Commission, said: “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.”
In response, Paddy Power Betfair stated: “PPB acknowledge that certain policies in force at the relevant time were ineffective. It had already evolved those policies, and that process remains ongoing.
“PPB recognises there have been considerable learnings from these cases and has invested in improving its AML and responsible gambling processes. PPB is also committed to working with the industry to raise standards, particularly in relation to safer gambling.”
