William Hill fined £6.2m for “systemic” social responsibility and AML failings
UK regulator blames operator's senior management for failings as investigation finds customers had deposited "large sums" of money linked to criminal offences
William Hill has been hit with a £6.2m financial penalty for what the UK Gambling Commission described as “systemic” social responsibility and money laundering failings.
A Gambling Commission investigation found that between November 2014 and August 2016 regulatory failings had enabled ten customers to deposit money linked to criminal offences, which resulted in gains for Hills of approximately £1.2m.
The regulator said “systemic” failings by William Hill’s senior management team at the time and insufficient numbers of staff in place meant the London-listed firm’s anti-money laundering (AML) and social responsibility processes were insufficient.
It also said Hills did not adequately seek information about the source of the funds or establish whether they were from problem gamblers.
Neil McArthur, executive director, of the Gambling Commission said: “We will use the full range of our enforcement powers to make gambling fairer and safer.
“This was a systemic failing at William Hill which went on for nearly two years and today’s penalty package – which could exceed £6.2m – reflects the seriousness of the breaches.
“Gambling businesses have a responsibility to ensure that they keep crime out of gambling and tackle problem gambling – and as part of that they must be constantly curious about where the money they are taking is coming from.”
William Hill, which has appointed external auditors to review its AML and social responsibility procedures, will pay £5m for breaching regulations and divest itself of the £1.2m earned from the transactions with the ten customers.
The operator is to announce its full-year financial results on Friday 23 February.
In a statement this morning, William Hill CEO, Philip Bowcock, said: “William Hill has fully co-operated with the Commission throughout this process, introducing new and improved policies and increased levels of resourcing.
He added: “We have also committed to an independent process review and will work to implement any recommendations that emerge from that review.
“We are fully committed to operating a sustainable business that properly identifies risk and better protects customers.
“We will continue to assist the Commission and work with other operators to improve practices in the areas identified.”
Today’s announcement is the latest in a plethora of financial penalties handed out by the Gambling Commission in recent months, most recently a £350,000 fine for GVC for “repeatedly misleading consumers” with adverts relating to free bonuses.
Last month, the UK’s gambling regulator also announced the launch of investigations into 17 online casino firms for failings in their AML and social responsibility processes.
Read EGR‘s recent analysis on the UK’s ongoing regulatory crackdown here.