Three online casino companies have been fined and one has been prevented from operating in the UK following a crackdown by the industry regulator.
The Gambling Commission has fined three firms almost £14m for not having “effective safeguards” to prevent money laundering and harm to customers from gambling.
Daub Alderney is to pay £7.1m, Casumo £5.85m and Videoslots £1m.
A fourth firm, CZ Holdings, surrendered its licence to operate in the UK.
“I hope today’s announcement will make all online casino operators sit up and pay attention, as our investigations found that a large number of operators and their senior management were not meeting their obligations,” said Neil McArthur, the chief executive of the Gambling Commission.
“We expect operators to know their customers and to ask the right questions to make sure they meet their anti-money laundering and social responsibility obligations.”
The Commission found that Videoslots had been making initial inquiries into the source of customer funds, but failed to continue to make checks.
In one case a Videoslots customer failed automated identity checks and instead provided a fraudulent driving licence, which was not detected.
The customer registered multiple fraudulent credit cards, which were also not detected. Those cards were used to deposit and gamble with “large amounts”.
The customer had deposited £17,405 by the time the company’s systems flagged the account. The Commission said those deposits were “suspected to be the proceeds of crime”.
Videoslots accepted that it had weaknesses in its systems and had taken action to address the issues, the Commission said.