Spreadex Limited will pay £1.4 million ($1.6 million) following a Gambling Commission investigation in the United Kingdom that revealed social responsibility and anti-money laundering failures.
As part of the settlement with the Commission, the operator is required to donate the funds to socially responsible organizations.
Among the failures in social responsibility, the Gambling Commission cited ineffective financial alerts that allowed customers to lose significant amounts in a short period of time, as well as a lack of adequate recording and evaluating customer interactions.
Furthermore, one customer was able to deposit £1.7 million and lose £500,000 in a single month. According to the Commission, while customer interactions occurred, they were not adequately evaluated, and account restrictions were not considered.
In terms of anti-money laundering failures, one customer met a £25,000 financial deposit alert but was permitted to increase the alert for further review to £100,000 based solely on a self-declaration of income and an open-course check.
Another customer was able to deposit £365,000 and lose £284,000 in three months without a sufficient source of funding.
Another customer was permitted to continue depositing funds after providing redacted bank statements as proof of funds.
“While it is disappointing to see anti-money laundering and social responsibility breaches occur despite our extensive published cases highlighting similar failures, we note the licensee’s swift and robust action to bring itself back into compliance,” said Leanne Oxley, Director of Enforcement and Intelligence at the Gambling Commission.
“We anticipate a similar level of commitment and engagement across the gambling sector.”