Raising Standards for consumers - Compliance and Enforcement report 2020 to 2021
Key issues identified through casework
Inadequate source of fund or source of wealth checks
Casework this year has seen continuing evidence of PML holders not maintaining adequate oversight and not being sufficiently curious in respect of source of funds or source of wealth used to gamble by their customers.
There have been repeated instances of a lack of adequate documentation and audit trails to demonstrate properly informed decision making by PML holders for Anti-Money Laundering (AML) and countering terrorist financing (CTF) obligations.
Reporting criminal offences
Nominated officer/ Money Laundering Reporting Officer (MLRO) poor practice
The Commission has noted numerous instances of poor practice by the nominated officer/MLRO, who also holds a Personal Licence, including:
- allowing commercial considerations to override AML/CTF obligations
- failure to submit Suspicious Activity Reports (SARs) to the United Kingdom Financial Intelligence Unit (UKFIU) wherever there is knowledge or suspicion of money laundering or terrorist financing (including criminal spending). It is important to note that a person may commit a criminal offence for failing to report knowledge or suspicion of money laundering or terrorist financing.
- failure to consider Commission-issued guidelines or learning.
- failure to report or delay submitting a corresponding SAR key event to the Commission.
- failure to submit Defence Against Money Laundering, or Defence Against Terrorist Financing SARs to request consent from the UKFIU to commit a prohibited act under the Proceeds of Crime Act 2002 (opens in new tab) (POCA).
Senior management lacking oversight
Having insufficient strategic oversight of the business’s assessment of the risks it faces for money laundering and terrorist financing.Previous section
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PML holder requirements
Last updated: 2 November 2023
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