New UK gambling report ‘‘On the Frontline: The UK’s Fight Against Money Laundering’ details that industry compliance professionals identify ‘corporate complacency as the biggest internal barrier’ to tackling AML deficiencies.
The report which has been sanctioned by global business and legal research firm LexisNexis Risk Solutions, details industry professional insights on money laundering directives and impacts.
The research conducted in collaboration with ‘Economist Intelligence Unit’, underlines that industry professionals ‘believe that their sector is at the highest risk of money laundering’.
Further ‘professional concerns’ see industry compliance stakeholders, outline that current UK regulatory frameworks are ‘only somewhat effective’ in tackling financial crimes.
The negative professional feedback comes as betting leadership increases AML provisions, with the report outlining that operator compliance budgets have increased by 80% during the past two years.
LexisNexis Risk Solutions report is published as the UK Gambling Commission (UKGC) warns betting leadership, that it will not tolerate a repeat of 2018 events, in which the commission sanctioned a record total of £20 million in penalty charges related to care of duty and AML failures.
Michael Harris, Director of Financial Crime Compliance and Reputational Risk at LexisNexis Risk Solutions stated
“The threat money laundering poses to the gambling sector is very real, and this fact is clearly recognised by those working within it too.
The industry needs to take urgent steps to address this growing threat by ensuring that customer due diligence checks are conducted before allowing any gambling activity to begin, and, given the rise in online gambling, should consider embracing digital know your customer (KYC) technologies.
This, along with training those teams dealing with customers on the frontline to spot money laundering red flags and adopt a risk-based approach, gives gambling operators the best chance of fighting financial crime and meeting their legal obligations.”