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UK – Buzz Group fined after breaching money laundering laws

By - 20 December 2021

Buzz Group, which operates buzzbingo.com, must pay a £780,000 fine after a Commission investigation revealed social responsibility and money laundering failures.

It has also received a formal warning for the failures which occurred between October 2019 and December 2020.

Social responsibility failures included not sufficiently identifying at-risk players as financial triggers were set too high. One customer was able to deposit £22,400 in five days without the operator conducting a meaningful interaction within that period. Two customers won large amounts of money gambling, yet the operator failed to consider the increased risk of gambling harm to those customers despite the customers displaying high levels of spend

It was also found guilty of not carrying out effective customer interactions with customers who gambled aggressively over short periods of time. One customer deposited and lost £12,400 during a six-day period but the operator’s only record of a customer interaction simply stated customer was ‘coping well in COVID-19’

Once a decision to interact with a customer had been made staff did not always sufficiently follow the requirement of the operator’s own customer interaction procedure to check the customer was comfortable with their gambling levels, if they felt in control, and then discuss responsible gambling tools and support resources.

Anti-money laundering failures included triggers prompting source of funds (SOF) checks being over reliant on open source or anecdotal information such as staff relying heavily on assurances provided verbally by customers during interactions

In one instance the operator placed reliance on a large customer win as the SOF for the customer’s future gambling spend without considering that it might not be recycled winnings and that it may be the proceeds of crime

Multiple alerts needed to be activated before a customer AML interaction took place. One customer was able to hit nine financial alerts before their account was suspended pending an AML interaction

The operator keeping insufficient records of AML interactions with customers and it was often not clear what had been discussed during those interactions.

The case against Buzz Group, like other recent enforcement action, was the result of planned compliance activity.

Helen Venn, Commission Executive Director, said: “As a regulator we expect all operators to effectively implement policies and procedures which make gambling safe and crime-free. Every single gambling business should be aware that we do check that these are in place and are being adhered to. If they are not, we will take action.”

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