‘£17m fine for gambling giant is warning for estate agents who ignore AML rules’

This week’s record £17m fine by the Gambling Commission of Entain, the company which runs Ladbrokes, Coral and Foxy Bingo, should sound alarm bells for estate agents, an anti-money laundering (AML) expert has warned.

Among other censures, the fine related to a series of “completely unacceptable” anti-money laundering (AML) breaches by the company.

In its judgement, the regulator warned: “Operators are reminded that they must never place commercial considerations over compliance.”

Martin Cheek, MD of SmartSearch, the UK’s leading anti-money laundering software provider, said that the judgement sent a stark message to all firms targeted by money launderers – especially the property sector.

Cheek, who is a qualified lawyer, says: “Property has long been targeted by organised criminals seeking to wash their dirty money. So much so, that the Government has categorised the sector as ‘high risk’ for money laundering purposes.

“All the regulators have been open about their mission to crack down on AML breaches and this eye-watering fine is a clear measure of their intent.

“Not only is the fine significant, but the naming and shaming of Entain and its brands is a forceful reminder of the reputational damage that accompanies such breaches.

“Most crucially, Entain’s AML breaches came mainly from a lack of due diligence – particularly failures to check sources of funds, failures to carry out robust know your customer checks and a reliance on flawed open-source searches when checks were made.

“These failures should be a wake-up call to estate agents – many of whom are struggling under the weight of compliance – to ensure that their AML procedures are robust.

“They also serve as a reminder that electronic verification of customers is the most effective way for regulated companies to manage their compliance risks quickly, responsibly and effectively.”

Read more: the true cost of AML.