The fine was announced Wednesday and sees TonyBet, which operates tonybet.co.uk, receive a £442,750 ($547,300) financial penalty from the gambling regulator. In addition to the financial penalty that the operator would need to pay, the Commission issued a warning.

Gambling Commission Uncovers AML Deficiencies

The gambling watchdog pointed out that TonyBet did not conduct an adequate risk assessment of its business and failed to determine the risks of it being exploited by criminal activities such as money laundering and terrorist financing. What’s more, it said that the operator did not establish necessary procedures, policies and controls against terrorist financing and money laundering. Those deficiencies were in breach of the AML regulations, according to the Commission.

Kay Roberts, the Commission’s executive director of operations, said that the latest regulatory action reaffirms the regulator’s commitment to enforcing regulation against operators breaching social responsibility and AML rules. At the same time, Roberts said that the action confirms that the Commission is prepared to take action against operators offering unfair or non-transparent services to their clients.

“Not only does this case illustrate our drive to clamp down on anti-money laundering and social responsibility failures, but also highlights action we will take against gambling businesses who fail to be fair and open with customers.“

Kay Roberts, executive director of operations at the Gambling Commission

The Probe Finds Social Responsibility Breaches, Unfair Conditions

Besides AML breaches, the Commission flagged social responsibility failures. According to the gambling watchdog, TonyBet failed to identify customers who may be at risk of gambling harm. Additionally, the Commission said the operator failed to “interact with customers who may be at risk of experiencing harms associated with gambling.”

Aside from the described breaches, the Commission uncovered unfair terms submitted via the operator’s website. An example pointed out by the regulator included that TonyBet “may request identification documents for ‘all withdrawals’ while not having insisted on those same checks earlier in the business relationship.” This, according to the gambling watchdog can cause difficulties with withdrawals but it doesn’t apply to deposits.

If customers failed to provide AML documents within 30 days, their winnings could be confiscated by the operator, which is another unfair term, according to the Commission. Finally, the regulator flagged an issue with accounts that are to be considered “dormant” after six months of inactivity, saying that this period should be 12 months instead.