UK’s Gambling Commission has found several social responsibility and AML failures in the workings of Casumo, a gambling business. As a result, Casumo will pay a £6m ($8.27m) fine and undergo extensive auditing. Casumo will also receive an official warning as a result of the Commission investigation.
Casumo’s social responsibility failings included not implementing policies for customer interaction when a customer’s activity may indicate problem gambling. Relatedly, it also did not follow the Commission’s guidance on customer interaction.
The Commission’s investigation revealed Casumo’s many AML failings too. The company allowed customers to deposit large amounts of money without adequate AML verification. It did not conduct sufficient assessment of source of funds, bank statements and other documentation. Casumo also failed to assess and determine, based on a wealth and risk assessment, the limit of what a customer can spend. Moreover, it did not ensure effective and timely implementation, review and amendment of its policies.
The Gambling Commission now requires Casumo to pay for third-party auditors to audit the company’s transactions since July 1, 2020. This will help the Commission ensure that Casumo has effectively implemented its new policies and is compliant with the Licence Conditions and Codes of Practice.
Source: Gambling Commission, UK
