A settlement resulting from an internal audit by 888’s subsidiary, Virtual Global Digital Services, earlier this year has been concluded. The examination exposed numerous inadequacies in their Know Your Customer (KYC) and Enhanced Due Diligence (EDD) protocols. As a result of these identified concerns, the firm has taken steps to rectify them and worked closely with regulatory officials to resolve the issues.
Mending The Mistakes: The Operator’s Initiatives
If we trace back to January, it was then that Virtual Global launched its own investigation into compliance following the suspension of VIP activities for certain markets by 888. The organization flagged significant issues with their KYC and AML processes. This led to the introduction of revised procedures and policies for their risk evaluation framework. Despite the successful rectification, the regulator in Gibraltar imposed a hefty penalty owing to the previous failures of Virtual Global.
In accordance with the recent agreement, the subsidiary of 888 is obligated to remit £2.9 million ($3.7 million). Part of the settlement amount will be allotted to the Centre of Excellence for Responsible Gaming at the University of Gibraltar, thereby supporting steps to combat problem gambling in the region. The Gibraltar Gaming Commissioner has deemed the penalty appropriate and has decided not to pursue any further action against the operator in violation.
“888 has made significant improvements in its policies and practices to rectify the historical deficiencies identified. This issue is now considered closed by the Gambling Commissioner and Licensing Authority.”
Gibraltar Gambling Commission
The regulator in Gibraltar is committed to ensuring that its licensees adhere to strict KYC and EDD protocols. These steps are crucial for authenticating customer identity, thwarting money laundering, and enforcing responsible gambling measures. Such penalties reinforce the government’s capacity to impose regulations and hopefully will aid in the removal of the region from the FATF greylist.
Maintaining the Pace: 888 Retains its Significance
The immediate remedial actions taken by Virtual Global to rectify the identified issues reflect the company’s commitment to regulatory compliance and high standards of responsible gambling and player protection. Despite previous disagreements with the Gibraltar regulator, 888 has shown willingness to work integratingly with the authorities and address any concerns.
The matter involving Virtual Global is the second high-profile financial penalty 888 has had to shoulder in recent times. Its $24 million fine in the UK had significant consequences, highlighting the need for tighter control over its subsidiaries. Regardless of such hurdles, 888 reported a striking growth in H1, capitalizing on its considerable business synergies to excel in the fiercely competitive gambling market.
The magnitude of the fine serves as a reminder to all stakeholders in the online gambling sector about the significance of stringent KYC and EDD processes. By adhering to robust compliance measures, companies can contribute to a safer and more transparent gambling environment for players and retain the trust of regulatory bodies.
