888 Fined £2.9 Million for Customer Due Diligence Failures in Gibraltar
The online gaming behemoth, 888, has consented to a substantial penalty of £2.9 million (equivalent to $3.7 million for our American counterparts). The reason? Their subsidiary, Virtual Global Digital Services, experienced a few hiccups regarding customer due diligence, often referred to as “KYC.” It appears their scrutiny of backgrounds and ensuring high-rollers were playing by the rules wasn’t as comprehensive as it ought to have been.
These oversights surfaced during an internal audit (always a joyous occasion). Discrepancies were identified, including insufficient verification of funds’ origins and an overreliance on automated protocols that, to be blunt, weren’t getting the job done.
Commendably, 888 took initiative. They temporarily suspended certain VIP initiatives and implemented necessary revisions to their policies and procedures. The gaming commission acknowledged their proactive stance and commitment to rectification, likely influencing their decision to refrain from imposing the maximum penalty.
A representative verified that no proof of illicit financial activities or funding for terrorist groups was discovered.
Included in the resolution, 888 Holdings will make a substantial donation to the University of Gibraltar’s Center of Expertise for Ethical Gaming. This financial support will aid crucial studies into problem gambling avoidance and therapy.
Notwithstanding the inquiry, 888 Holdings is still considered appropriate to retain a gaming permit in Gibraltar. The firm has already enacted more robust regulations and protocols to tackle the pinpointed concerns.
In a communication, the Gaming Regulator stressed that this situation is now resolved and no additional remarks will be issued.