AML failings

Onisac Ltd. has to pay an ￡850,000 ($1.14m) fine as a result of its anti-money laundering (AML) failings. The Gibraltar Gambling Commissioner publicly announced the regulatory settlement with the Mansion Group-owned online casino operator on Sunday.

The specific failings relate to AML deficiencies when dealing with non-UK and non-EU customers. Onisac has accepted the findings that the Gambling Division uncovered while carrying out an on-site assessment. The regulator conducted the review to ensure that the operator’s ongoing monitoring and due diligence practices were all in line with industry standards and discovered issues relating to numerous customer accounts.

failure of former senior management members to adequately respond to regulatory advice

The Gambling Division statement explained that an aggravating factor was the failure of former senior management members to adequately respond to regulatory advice; they did not carry out the measures of an agreed upon action plan.

Areas to improve

The current senior management team has cooperated fully with the Gambling Division regarding this matter. The team has agreed to put better governance structures in place, as well as cooperate with a third-party review and be subject to an extended monitoring period from the Gambling Division.

The ￡850,000 ($1.14m) fine will go to the Gibraltar government’s Consolidated Fund. The regulator arrived at this particular figure after taking into account the additional costs associated with the operator’s remediation program. Onisac will hold onto its operating license and will not be subject to further action regarding the matter.

While there is no action against any of the other Mansion Group brands, the group has committed to improving its compliance controls and making sure that there are no AML deficiencies across the board. It will also significantly improve social responsibility controls.

A big focus for regulators

Gibraltar’s Gambling Division has been busy conducting site visits and reviews of industry operators. In general, the regulator has found that operators now meet the necessary compliance standards.

a particularly strong emphasis on AML protections

The HM Government of Gibraltar started to place a particularly strong emphasis on AML protections in 2020. This came following a “thematic review” by the Gambling Division looking into the compliance and AML duties of licensees. The review uncovered many failings and led to the issuance of ￡2.5m ($3.35m) worth of fines.