Lesson To Be Learned From Paddy Power anti-money laundering Failures

Monday, February 29, 2016 :  UKGC SAYS LESSONS TO BE LEARNED IN PADDY POWER AML AND SOCIAL RESPONSIBILITY FAILURES

Racks up GBP 307,250 in reparation costs.

Gambling giant Paddy Power Group was humbled by a very public statement and a hefty monetary contribution to the UK Gambling Commission in relation to failings in its anti-money laundering and social responsibility controls identified in a report released today (Monday).

The UK Gambling Commission cautioned other operators saying they would be wise to learn from Paddy Power’s failings in “keeping crime out of gambling” and “protecting vulnerable people from being harmed or exploited”.

The commission identified failings in the way Paddy Power handled relationships with two customers at one of its shops and with one of its online customers who was later convicted of serious criminal offences.

Paddy Power in acknowledgement of these failings offered a voluntary settlement with the UK Gambling commission which comprises:

–    Commission of an independent review of its anti-money laundering and social responsibility controls across its retail estate and anti-money laundering controls in its remote business.

–    An agreement to the publication of a public statement by the Commission to share learning with the industry and the public.

–    An agreement to share learning from the cases with the remote and non-remote sectors in a format to be agreed with the Commission.

–    A commitment to amending policies and procedures to address the shortcomings identified in the course of the investigation.

–    The payment of GBP 280,000 in total to an agreed socially responsible cause, which represents a sum to remove any profits made from the three customers in question and a voluntary payment in lieu of a financial penalty

–    Agreement to contribute GBP 27,250 to the Commission’s costs in investigating the matter.

The UK Gambling Commission’s full report can be accessed here:

http://www.gamblingcommission.gov.uk/pdf/Paddy-Power-public-statement-February-2016.pdf