An 888 Holdings branch in Gibraltar received a significant £2.9 million penalty for failing to meet various compliance standards. This announcement follows the company’s January decision to halt its VIP programs in specific areas, leading to an internal assessment.
Virtual Global Digital Services, the online arm of 888, has consented to pay the Gibraltar Gambling Commission. Apparently, they faltered on critical aspects like Know Your Customer (KYC) and Enhanced Due Diligence (EDD) procedures – essentially, their customer background checks were insufficient.
These issues surfaced during an earlier internal inquiry this year, revealing areas needing substantial improvement. We’re talking inadequate KYC measures, an over-reliance on high thresholds for EDD reviews, inconsistent and incomplete EDD assessments, and a somewhat disorganized method for restricting and shutting down accounts. Moreover, some customers weren’t even required to disclose their funding sources or provide proof of claimed assets. Ouch.
Since suspending those VIP services, 888 has been actively working to rectify the situation. They’ve implemented updated policies and procedures and have been re-evaluating the risk associated with the implicated accounts.
The Gambling Commission, showing leniency (possibly influenced by 888’s swift response and openness), went easy on them. They considered 888’s willingness to be upfront, the financial impact of suspending accounts, and their prompt efforts to set things straight.
An official representative stated that no illegal activities involving illicit funds or funding for terrorist organizations were discovered.
A portion of the funds, however, will be allocated to the University of Gibraltar’s Center for Excellence in Responsible Gaming to bolster their efforts in combating and addressing gambling addiction.
Notwithstanding the resolution, 888 Holdings is deemed to remain eligible to retain its Gibraltar license. The company has enacted more robust protocols and measures to rectify the identified deficiencies.
The case is now concluded, and no further statements will be issued.
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