Rank to forfeit £950,000 over AML failings
Gambling Commission calls on industry to "act on lessons" from investigation into weaknesses of Rank Group's anti-money laundering controls
Rank Group will forfeit almost £1m in profits after a Gambling Commission investigation found it wasn’t taking suitable steps to protect against money laundering and fulfil its social responsibility obligations in two separate cases.
The first case involved a Grosvenor Casinos customer who was subsequently convicted of money laundering, with the Commission criticising Rank for failing “to take appropriate action when Grosvenor staff had suspicions about the customer’s transactions”, as well as not maintaining adequate records.
In a second unrelated case which came to light during the first investigation, an unidentified meccabingo.com customer was able to gamble a six-figure sum without undergoing proper AML or social responsibility checks. It was subsequently discovered the customer was defrauding the money from two of her employers.
According to the Gambling Commission, Rank Digital identified the customer as “commercially valuable”, taking her on a trip to Las Vegas and a cruise without questioning the source of the money.
Rank Group agreed to the £950,000 forfeiture in the form of a voluntary settlement to prevent the need for a full investigation into the second case or a formal licence review.
The money will be spent on “agreed socially responsible purposes” after Rank acknowledged “serious shortcomings” in its AML procedures, according to a statement from the Gambling Commission.
Rank will also undergo a third-party audit of its new AML arrangements following the investigation which raised questions over the operator’s willingness to accept money from illegitimate sources.
A Rank Group spokesperson told eGaming Review the operator was disappointed that its AML and responsible gambling procedures had not been followed but added that it was undergoing a review to ensure the “highest possible standards” are maintained in the future.
“We have since conducted a full review of our operational approach and are currently engaged in a nationwide briefing programme for both our retail and digital managers,” the spokesperson said.
“In line with the Commission’s recommendations, we will shortly undergo an independent critical review to ensure that the highest possible standards are maintained at all times in both these important areas,” she added.
In a report published on its website, the Gambling Commission said the case should provide a “valuable learning” tool for other operators.
“All operators should review the conditions of their licences in light of these cases and take a critical approach to assessing their policies and procedures, in particular to ensure they are being followed by staff and remain fit for purpose,” it said.