UK Government Gambling Commission's Fervent Commitment to Anti-Money Laundering and Countering Financing Terrorism Showcased in HMRC Report

In a recent report, the Gambling Commission in the UK has highlighted encouraging progress in its efforts to combat money laundering and counter terrorism financing (AML/CTF) within the gambling sector.

The commission reported a notable increase in the number of compliant gambling operators, with 50% of businesses assessed as compliant—an increase from 18% in the 2022-2023 period. This improvement is a testament to the commission's ongoing commitment to ensuring industry-wide compliance.

However, the report also revealed that the land-based sector retained a higher risk of money laundering compared to other gambling sectors. To address this, the Gambling Commission has increased its focus on this sector, conducting 32 desk-based reviews (DBRs) for the 2023-2024 period, up from 25 in the prior year.

The commission's AML/CTF work is supported by a team of 160 employees from various teams, in addition to the five full-time employees dedicated solely to AML/CTF. The commission also allocated £227,700 to AML/CTF for the 2023-2024 period, an increase from the previous years' allocations.

Widespread compliance failings were identified in the report, particularly in relation to personal management, license holders' competency levels, and inadequate Customer Due Diligence (CDD) and Enhanced Due Diligence (EDD) checks. These failings have enabled high levels of transactions to occur, highlighting the need for continued vigilance and improvement in these areas.

The Gambling Commission recorded a notable increase in the number of medium-risk gambling operators, rising from 7% to 15% for the 2023-2024 period. Conversely, non-compliance decreased significantly, dropping to 25% for the 2023-2024 period from 59% in 2022-2023. The percentage of low-risk gambling businesses decreased to 46% for the 2023-2024 period, down by 5% from the previous year.

The commission's efforts have not gone unnoticed, with the UK's tax, payments, and customs authority, HM Revenue and Customs (HMRC), releasing a new report focusing on the Gambling Commission's role in fighting money laundering. The report identified 97 high-risk, 37 medium, and 113 low-risk firms in the 2023-24 reporting period.

Despite the progress made, the commission conducted slightly fewer on-site visits for the 2023-2024 period, with eight visits compared to nine in the prior year. This reduction is likely due to the increased focus on desk-based reviews, reflecting the commission's strategy to balance on-site visits with desk-based reviews to maximise its impact.

The Gambling Commission currently supervises 247 gambling operators, a decrease from 263 in the previous year, demonstrating the commission's ongoing efforts to streamline its operations while maintaining its high standards of AML/CTF regulation.

UK Government Gambling Commission's Fervent Commitment to Anti-Money Laundering and Countering Financing Terrorism Showcased in HMRC Report