Key points:
- AG Communications will pay £1.4m for social responsibility and anti-money laundering failures
-The investigation revealed gaps in customer protection, including instances of customers losing substantial amounts without proper intervention
- The operator previously faced regulatory action in 2022 for similar compliance breaches
AG Communications, which operates as AspireGlobal and runs 58 gambling websites, has been ordered to pay £1.4m ($1.8m) following an investigation by the Gambling Commission.
The settlement follows findings of social responsibility (SR) and anti-money laundering (AML) failures.
The funds will be directed to socially responsible causes as part of the agreement.
The investigation revealed that AG Communications failed to implement effective systems to prevent customers from spending large sums in short periods without proper risk assessments.
In one instance, a customer lost £6,000 in 48 hours before any safer gambling intervention was attempted.
Another individual deposited and lost £7,000 in just over four hours due to a system error that bypassed spending limits.
Additionally, a previously self-excluded customer was able to open multiple new accounts.
AML failures included an over-reliance on financial thresholds for monitoring potential risks. The investigation found that customers flagged as medium to high-risk were not subjected to manual Enhanced Customer Due Diligence (ECDD) checks until financial triggers were met.
In some cases, ECDD reviews were delayed by up to eight days, contrary to the company’s stated policies.
Good to know: This marks the second regulatory action against AG Communications; in 2022, the operator was made to pay £237,600 for similar AML shortcomings
Commenting on the development, John Pierce, Director of Enforcement at the Gambling Commission, stated: “This case marks the second occasion that this operator has been subject to enforcement action. Its failure to uphold anti-money laundering standards, delays in necessary interventions and deficiencies in social responsibility measures are wholly unacceptable.
“Today’s outcome underscores the gravity of these breaches. It is essential that operators not only implement and maintain robust anti-money laundering policies, procedures and controls but also act swiftly and decisively in response to any indications of suspicious activity.
“This case stands as a clear warning to all operators that repeated regulatory failings will result in increasingly stringent enforcement action.”
