Gibraltar-based operators agree £2.5m RG payout following regulatory review

Several Gibraltar-licensed operators have agreed to pay £2.5m to the Gibraltar Gambling Care Foundation after the peninsula’s regulator identified “historic control weaknesses” in AML policies.

The payout comes following the completion of the Gibraltar Gambling Division’s (GGD) latest 12-month thematic review of AML procedures used by B2C licensees in respect of non-UK international customers.

Names of the contributing operators have not been disclosed.

The review engaged and analysed historical processes being operated by those firms and monitored their improvements during the period to standards required and expected today.

It identified several weaknesses in control procedures used by B2C operators, which have since been rectified by the affected firms.

However, the GGD has said that while the individual operators involved worked on a collaborative basis with the regulator, analysis of individual cases identified “wider generic systems weaknesses” common to more than one operator.

The thematic review confirmed that while the operators had risk-based controls in place, which were being incrementally improved, in some cases risk tolerances were too great and the timing on interventions was too slow or ineffective.

“In one case reviewed, several operators received monies that had been stolen from an employer by an individual in a position of trust who had fraudulently forged documents and provided false information in relation to evidencing his wealth and source of funds,” the GGD said.

“As a result of the full and frank cooperation afforded by operators during the review, including agreements to divest profits which represent the proceeds of crime, the Gambling Commissioner concluded that he was satisfied that no further action was required,” the GGD added.

However, the GGD has committed to the regular monitoring and inspection of operators identified as part of the review.

Part of the payout will be used by the Gibraltar Gambling Care Foundation to support existing training initiatives taking place at the Gibraltar University in AML and social responsibility.

Representatives of the foundation have confirmed the remaining portion of the funds will be used to create a new Centre of Excellence for Responsible Gambling (CERG) at the University.

This centre will conduct important research with the sector into all issues relating to problem gambling, including its causes, identification, mitigation and support for those affected.