Maple International Ventures to Disburse £350,000 Amid Compliance Failures
The UK Gambling Commission recently mandated that Maple International Ventures, the entity behind Lottomart.com, pay £350,000 ($477,236) due to multiple lapses in anti-money laundering practices and social responsibility protocols.
An in-depth inquiry by the Gambling Commission unveiled significant breaches of license obligations, including a failure to adhere to the Social Responsibility Code. From June 2023 to July 2024, Maple’s evaluations of potential risks were found deficient, missing vital factors in their assessments and lacking comprehensive policy details.
In its report, the regulator highlighted issues under Licence Conditions and Codes of Practice (LCCP) 12.1.1(1), which pertains to the evaluation of risks relating to money laundering and terrorism financing. It noted that during the five months leading up to October 2024, Maple had inadequate measures in place to combat these issues, particularly in maintaining robust policies and controls.
One concerning example involved a user who managed to bypass automated security measures by slightly altering their name, resulting in the processing of significant deposits before detection.
Moreover, breaches related to LCCP 12.1.1(3) were also identified, emphasizing deficiencies in the execution of anti-money laundering and social responsibility policies. Delays were observed between recognizing money laundering risks and implementing necessary actions, allowing users whose identities had not been fully verified to exceed acceptable transaction thresholds.
Interestingly, the commission found no evidence of funds sourced from sanctioned individuals or illegal activities.
Shortcomings in Social Responsibility at Lottomart.com
The commission also spotlighted inadequacies in monitoring customer behavior for signs of gambling-related harm. Under SRCP 3.4.3, it pointed out that Maple’s systems were inconsistent, allowing players to create multiple accounts and make substantial deposits before the second account was identified.
Additionally, shortcomings were highlighted regarding the usage of indicators to detect gambling harm. The regulator criticized Maple’s mechanisms as “insufficient,” particularly noting instances where substantial wins were closely followed by increased wagers.
Lastly, concerns were raised regarding SRCP 3.4.3 paragraph 11, which deals with establishing automated responses to significant harm indicators. The commission stated that Maple’s definitions of “strong” indicators were vague and lacked adequate automated responses.
Payment Agreement Despite Proactive Measures
In conclusion, the Gambling Commission revealed that Maple had agreed to a payment of £350,000 in lieu of a financial penalty, including a directed £50,000 for socially responsible initiatives. This payment will also help cover investigation costs.
The commission recognized Maple’s efforts to quickly implement a corrective action plan and the company’s full cooperation during the investigative process. It was noted that Maple had prior knowledge of certain system issues, but effective measures were only established post-discussion with regulators, ultimately culminating in the payment agreement.
John Pierce, the director of enforcement at the Gambling Commission, articulated the primary objective of maintaining effective policies for a safer gambling environment. He emphasized the importance of accountability for anti-money laundering and social responsibility failures, advising other operators to scrutinize Maple International Ventures’ public statement to evaluate their systems’ efficacy.
In closing, the commission’s findings serve as a critical reminder to all operators about the essential nature of robust compliance measures in maintaining a fair and safe gambling landscape.