British bingo firm Stride Gaming has been handed a £7.1 million fine by the UK Gambling Commission for violating the country's anti-money laundering laws.
The fine was handed down to subsidiary firm Daub Alderney, and is larger than the company had put aside earlier this quarter when the review was announced. According to the regulator, the firm didn't do it due diligence checks, establish and maintain risk-sensitive policies, and properly train staff on anti-money laundering policies, among other violations related to money laundering.
Adding to the fine was a two month technical failure that saw self-excluded and problem gamblers sent emails promoting the bingo service. This ended up resulting in 73 punters wagering when they shouldn't have been.
To their credit, Stride admitted to failing to conduct thorough looks at 742 sources of funds for punters. Eventually, 63 of those accounts had to be frozen because of insufficient information. The company also acknowledged the problem gambler fiasco, and will pay the fine without appeal.
The decision by the UKGC was published on the regulator's website, which read in part: "The Panel also agreed that it was appropriate to impose a financial penalty under section 121 of the Act. In reaching this decision the Panel had regard to the Statement of principles for determining financial penalties (June 2017). The Panel concluded that it was appropriate for the Licensee to pay a financial penalty of £7,100,000 and that this was a proportionate outcome."