Buzz Group slapped with £780k UKGC fine for social responsibility and AML failings

Buzz Group has been fined £780,000 by the UK Gambling Commission (UKGC) for failures relating to social responsibility and anti-money laundering (AML) procedures.

The Buzz Bingo operator received a formal warning from the UKGC for failures occurring between October 2019 and December 2020.

Following a formal investigation, the UKGC identified a number of social responsibility deficiencies relating to how Buzz interacted with its customers.

These included the firm’s existing financial triggers, which would identify at-risk players, being set too high, failings which included not contacting a player who had deposited £22,400 over a five-day period to assess the player’s risk level.

In a similar case highlighted by the UKGC, one customer deposited and lost £12,400 during a six-day period but the operator’s only record of interaction simply stated the customer was “coping well in Covid-19”.

Similar failings include not conducting increased interaction with players who won large amounts on the site, despite their risk of gambling-related harm increasing.

In addition, UKGC investigators found Buzz Group staff failed to sufficiently follow its own customer interaction procedures with respect of social responsibility interactions.

In respect of AML failings, Buzz Group was found to be “over reliant on open source or anecdotal information” relating to source of funds checks, including a heavy reliance on customers verbal assurances.

In one instance, the operator used a large customer win as the source of funds for the customer’s future gambling spend without considering that it might not be recycled winnings and that it may be the proceeds of criminal activity, the regulator said.

UKGC investigators found that thresholds used before AML interactions took place were insufficient or too lax. In one case, a customer was able to trigger nine financial alerts before their account was suspended pending an AML interaction.

Buzz Group was also found to have kept “insufficient” and unclear records of customer interactions with respect of AML.

UKGC executive director Helen Venn issued a warning note for other operators making these sorts of failings.

“Every single gambling business should be aware that we do check that these are in place and are being adhered to. If they are not, we will take action,” Venn added.

In a statement provided to EGR, Buzz Bingo COO Dominic Mansour affirmed the group’s commitment to high standards of compliance, particularly in AML and social responsibility.

“The fine from the Gambling Commission relates to legacy issues that have now been addressed,” Mansour said.

“Buzz Bingo has reviewed and overhauled all its compliance measures and is confident that current policies and processes now meet the standards set.

“Moreover, Buzz Bingo has increased its current and ongoing investment to enhance all its risk and compliance processes to continually improve player protection,” he added.