Gibraltar regulator agrees £25,000 settlement with unnamed operator

The Gibraltar Gambling Commission (GGC) has agreed a £25,000 regulatory settlement with an unnamed licence holder over anti-money laundering (AML) and counter-terrorist financing (CTF) failings.

The agreement was described as a settlement in lieu of a financial penalty that would have otherwise been handed to the unnamed business.

While the GGC did not disclose the operator in question, the regulator did further lift the lid on the shortcomings it had identified.

The licensee in question had failed to fully document enhanced due diligence procedures for its non-UK customers.

The operator also accepted that its enhanced due diligence procedures were “being conducted on a less formalised basis in respect of [non-UK customers]”.

The regulator highlighted a technical suspicious activity reporting breach as the business failed to report a case to the Gibraltar Financial Intelligence Unit.

However, the case was reported to the financial intelligence unit in the country in which the customer was based.

The GGC noted that it did not feel there was “any widespread systemic weakness in the controls” of the operator, and that the company had been “fully cooperative” during the process.

It added the firm had been quick to remediate and is considered fit and proper to continue to hold a Gibraltar licence.

As a result of the investigation and subsequent £25,000 settlement, the operator has been placed into enhanced monitoring by the regulator and will receive an additional site visit within the next six months.

The GGC said in a statement: “The key learning points are that operators should fully acquaint themselves with the provisions of the Gibraltar Proceeds of Crime Act, the Gambling Commissioner’s advice to the industry in connection with AML/CFT [counter-financing of terrorism] and, any learning points from previous public statements made in connection with regulatory settlements or other sanctions.

“Operators are reminded to maintain the highest AML/CFT standards in terms of both documenting and operationalising all controls.”

Earlier this year, Andrew Lyman, Gibraltar’s gambling commissioner, said there was no need to “press the panic button” on the British overseas territory’s role as an igaming hub.

His comments came as operators in Gibraltar were cutting headcounts, while the ongoing pressures from Brexit continue to hamper the jurisdiction.

Gibraltar was removed from the Financial Action Task Force’s grey list earlier this year, in what was a welcome result for headland.