This investigation resulted in the commencement of a section 116 regulatory review of Spreadex Limited (Spreadex). The Commission commenced its regulatory review on 2 June 2021, following concerns identified in a compliance assessment conducted in May 2021.
The regulatory review found failings in Spreadex’s procedures which were aimed at preventing Money Laundering (ML) and protecting vulnerable people.
Between January 2020 and May 2021 Spreadex breached the Licence Conditions and Codes of Practice (LCCP), specifically:
- paragraphs 1, 2 and 3 of licence condition 12.1.1, requiring the prevention of money laundering and terrorist financing. This includes its failure to act in accordance with the Commission’s guidance: The Prevention of Money Laundering and Combating the Financing of Terrorism - Guidance for remote and non-remote casinos OCP 2.1.1 – Anti-Money Laundering (Casino)
- paragraphs 1 and 2 of Social Responsibility Code Provision (SRCP) 3.4.1, requiring licensees to interact with customers in a way which minimises the risk of customers experiencing harms associated with gambling, and to take into account the Commission’s guidance on customer interaction.
Taking into account remedial action taken by Spreadex and in line with our Statement of Principles for licensing and regulation, Spreadex will pay a total of £1,363,786 in lieu of a financial penalty.
More information about this case can be found on the Commission’s website.