The UK Gambling Commission (UKGC) has imposed a £1 million fine on Greentube Alderney, which operates the Admiral Casino brand, after the company was found to have failed repeatedly in its obligations to adhere to both anti-money laundering (AML) and social responsibility regulations. The fine was levied after an in-depth investigation revealed multiple violations spanning from September 2022 to June 2023, with the operator falling short in key areas such as customer checks, safeguarding against money laundering, and detecting signs of gambling vulnerability.
AML failures and delayed investigations:
Greentube’s lapses in anti-money laundering protocols were particularly concerning. The company was found to have failed to adequately scrutinize customer information, allowing risky transactions and suspicious activities to go unchecked for extended periods. In one troubling case, a customer submitted a bank statement as proof of address that showed over £100,000 in unusual transactions. Despite the red flags, the statement was only reviewed months later when the customer’s gambling activity hit a predetermined threshold.
Further concerns were raised by the company’s failure to follow its internal policies regarding “risky occupations,” which aim to identify higher-risk customers based on their employment. One case involved a customer employed as a finance manager, a role that may involve access to significant amounts of funds, potentially facilitating money laundering. Greentube did not flag this occupation as high-risk nor take steps to mitigate the associated risks, allowing the customer to continue gambling without further scrutiny.
In another instance, the company overlooked a significant red flag when a customer linked to another blocked account was not investigated properly. The second account was associated with a customer who had criminal convictions for supplying Class A drugs.
In addition to the failures in anti-money laundering procedures, Greentube also fell short in its social responsibility obligations. The Gambling Commission found that the operator had not adhered to its own policy of ensuring customer limits are based on sustainable income. In one case, after a large win, a customer was allowed to deposit large sums of money far beyond their usual limits, with no checks to confirm the source of the funds.
Greentube also failed to properly verify customers’ know-your-customer (KYC) documentation, which is essential to ensuring that the provided identity information is legitimate. Despite having trained staff, the company did not always apply these procedures effectively, resulting in an increased risk of harm to vulnerable players.
One alarming case involved a customer who submitted a bank statement showing negative balances and transactions involving another gambling operator. Despite these clear signs of potential financial distress, the case was not flagged or investigated until the individual had deposited a total of £4,000 over the span of four months. This lack of timely intervention contributed to a greater risk of harm.
Repeat offense and increased regulatory scrutiny:
This fine marks a repeat offense for Greentube Alderney, which had previously been penalized in 2021 for similar failures in anti-money laundering and social responsibility standards. Back then, the operator was fined £685,000 for comparable violations, prompting the UKGC to issue a stern warning about the importance of complying with regulatory standards.
John Pierce, the UKGC’s Director of Enforcement, emphasized the seriousness of the company’s failings in the regulator’s press release. He noted that the latest fine came after a follow-up compliance assessment designed to evaluate whether the operator had addressed previous issues. While Greentube had made some general improvements, the company still failed to meet the required standards, leading to the imposition of further penalties. Pierce made it clear that repeat offenders would face increasingly severe actions: “We want to remind all operators that any business found to breach rules designed to keep gambling safe and free from crime for a second time should expect increasingly stringent enforcement action. Any failure to uphold anti-money laundering standards is unacceptable, and today’s action reflects the gravity of the breaches identified. We will continue to monitor this operator to ensure they consistently meet the required regulatory standards.”
The operator has since agreed to put in place an action plan aimed at addressing the identified failings, and the UKGC will continue to monitor its progress closely.
This penalty serves as a strong reminder to the gambling industry about the importance of upholding social responsibility standards and protecting consumers from harm. The UK Gambling Commission’s increasing focus on financial responsibility and AML measures reflects its broader efforts to safeguard the public and ensure that operators take the necessary steps to prevent money laundering and gambling-related harm.
With other operators such as Entain and William Hill also facing record fines, the industry is facing heightened scrutiny, and Greentube’s failure to fully comply underscores the ongoing challenges in enforcing compliance. Going forward, the Commission plans to expand the use of Open Banking technology to improve the analysis of customer finances, providing operators with better tools to detect problem gambling and potential criminal activity.
