What led to the regulatory action?The UK Gambling Commission recently conducted investigations on Lindar Media that led to the discovery of failings in the operator’s online casino processes for preventing money laundering and protecting individuals from gambling-related harm and exploitation. The UK Gambling Commission also discovered:
- Failings in the operator’s execution of AML policies, procedures, and controls
- Deficiencies in the operator’s responsible gambling policies, procedures, controls, and practices
- Weaknesses in reporting arrangements regarding key events
- Failures in improving terrorist financing risk assessment
- Inadequate assessment of risks related to customers, payment methods, and emerging risk operator control
- Failures in addressing key risk factors in the Money Laundering Regulations of 2017 and the UKGC’s Prevention of Money Laundering and CFT[
Discovery of Further Infractions
The UKGC also concluded that it was inappropriate for Lindar Media to have placed procedures that automatically assign all new players with low money laundering risk ratings. The commission also found that Lindar Media has had very low financial thresholds that allow players to deposit and lose up to £10,000. There are also no standards that prevent clients from depositing large sums and losing them in a short time.
The commission also discovered that Lindar Media failed to practice social responsibility while advertising itself. The operator has also failed in making annual financial contributions to organizations that support research, prevention, and treatment of victims of gambling. This is a significant social responsibility requirement that must be upheld, even if a company is offering free slots!
The UK Gambling Commission also discovered that Lindar Media had assigned a head of regulatory compliance without approval from the commission. The head of regulatory compliance is the person in charge for the operator’s compliance to gambling regulations. The UKGC reserves the right to approve the person that holds this position.
While Lindar Media has been discovered to have many regulatory issues by the UKGC, the commission has also reported that the operator is taking proactive steps to address the issues and rectify its mistakes. The £690,947 that Lindar Media will pay to the UKGC as a result of the investigation will all go to social responsible causes. The UKGC will assign it to a worthy course as is the case with other settlements.