An online subsidiary of 888, Virtual Global Digital Services, has reached a settlement of £2.9m ($3.7m) with Gibraltar's Gambling Commissioner due to failings in Know Your Customer (KYC) and Enhanced Due Diligence (EDD) procedures.
The settlement comes after an internal review conducted earlier this year that highlighted several issues in these areas.
The review found the company had ineffective KYC controls, historical overreliance on high thresholds for EDD intervention, inconsistent and weak EDD checks and an inconsistent approach to account restrictions and closures.
It also noted that some customers were not asked to provide the necessary source of funds and source of wealth documentation.
After 888 suspended 'VIP' activities in certain markets in January, it started conducting an internal review.
Following this, new policies and procedures were introduced and relevant accounts underwent an updated risk assessment process by April 2023.
The Gambling Commissioner took several factors into consideration when agreeing to the settlement, including 888's prompt self-declaration of the issue, the suspension of accounts resulting in revenue loss and the swift implementation of internal compliance reviews and control enhancements.
The Commissioner clarified that no cases involving dealing with the proceeds of crime or terrorist financing were identified.
Meanwhile, a portion of the settlement will be allocated to the Centre of Excellence for Responsible Gaming at the University of Gibraltar to support its work in preventing and treating problem gambling.
Despite the settlement, 888 remains deemed fit and proper to hold licences in Gibraltar, with enhanced policies and procedures in place to address the identified deficiencies.
A statement read: “The Gambling Commissioner and Licensing Authority consider this matter closed and will be making no further comment on this matter.”
