Virtual Global Digital Services, the company operating under 888, will settle with the Gibraltar Gambling Commissioner for £2.9 million (equivalent to $3.7 million). This agreement follows an internal audit that uncovered significant shortcomings in the company’s adherence to Know Your Customer (KYC) and Enhanced Due Diligence (EDD) regulations.
Essentially, their efforts to authenticate customer identities and trace the origins of funds were insufficient. These lapses included inadequate verification of customer identification, an overreliance on high expenditure as an indicator for risky conduct, and inconsistencies in account monitoring and the detection of potentially suspicious actions. Additionally, they failed to consistently obtain the required documentation to validate the source of their customers’ finances.
888, upon discovering these issues, temporarily halted VIP operations in certain markets in January to address the situation. Subsequently, they implemented revised policies and procedures, and by April 2023, had reassessed the risk profiles of the affected accounts.
The Gambling Commission considered these factors, including 888’s proactive self-reporting, revenue losses from account suspensions, and swift remedial measures, when determining the settlement sum.
A representative explained that no proof was discovered of any misconduct connected to illicit financial activities or funding for terrorist groups.
Included in the resolution, a segment of the capital will be allocated to bolster the University of Gibraltar’s Responsible Gaming Excellence Center, advancing their efforts in compulsive gambling deterrence and therapy.
Notwithstanding the resolution, 888 Holdings is still deemed appropriate to retain a gaming permit in Gibraltar, having already enacted more robust protocols and methods to tackle the pinpointed concerns.
The announcement finished by stating that both the Gaming Commissioner and Licensing Authority deem the issue resolved and will not provide further remarks.
