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On Tuesday (Sep 16), the UK Gambling Commission ordered Maple International Ventures, the operator behind Lottomart.com, to pay £360,000 ($477,236) after uncovering multiple failures related to anti-money laundering (AML) and social responsibility.
An investigation revealed significant breaches of license conditions, particularly in how Maple assessed risks associated with money laundering and terrorist financing. The UKGC also found that the breaches occurred between June 2023 and July 2024.
The regulator highlighted these concerns under License Conditions and Codes of Practice (LCCP) 12.1.1 (1), which emphasizes the importance of properly evaluating the risks of a business being misused for illicit activities. As part of the settlement, the £360,000 fine will be directed toward socially responsible initiatives.
Compliance Assessment Failures
The review revealed significant gaps in how Maple assesses risks related to organized crime and mule accounts. In some instances, the company’s controls were so insufficient that a customer managed to evade detection simply by reversing their first and last names.
Additionally, the Gambling Commission found that the operator failed to thoroughly verify customer identities before allowing accounts to exceed transaction limits. This oversight compromised critical customer due diligence measures that are essential for preventing illicit activities.
While the investigation did not uncover any evidence of criminal spending or the acceptance of funds from individuals under financial sanctions, the breaches in compliance practices highlighted a need for stronger safeguards within the organization.
Multiple Social Responsibility Breaches
The regulator also pointed out significant flaws in Maple’s approach to social responsibility. Their systems, meant to monitor player activity and spot potential gambling harm, proved to be ineffective.
For instance, one player managed to open a second account despite existing rules designed to prevent this. This individual went on to make substantial deposits before Maple’s team caught on to the situation.
Furthermore, the Commission criticised the company for its inadequate controls in detecting harmful behaviors, such as gambling binges, sudden spikes in activity, and high-stakes betting following big wins.
The processes in place for interacting with customers did not prompt timely interventions for those showing signs of problematic gambling. Ultimately, the regulator found that Maple failed to fulfill its duty to safeguard players from gambling-related harm.
Maple acted quickly says UKGC
The £360,000 settlement includes a £50,000 allocation specifically reserved for organizations dedicated to promoting responsible gambling.
The Gambling Commission acknowledged that Maple acted quickly by implementing an action plan to address the identified issues. The company also cooperated fully during the investigation and recognized its breaches early on.
Although Maple was aware of some problems with its systems before the inquiry began, it wasn’t until discussions during the assessment that effective solutions were put into place. This practical approach, together with the company’s previously clean compliance record, led to the agreement on the payment.
“The cornerstone of every licensed business must be the proper implementation of effective policies and procedures aimed at making gambling crime free and safer,” said John Pierce, director of enforcement at the Gambling Commission.
“This operator is now being held to account for anti-money laundering and social responsibility failings uncovered during a compliance assessment.
“We would advise all operators to read the Maple International Ventures public statement and consider whether their own policies and procedures are both effective and are being successfully implemented.”
Source: iGB
