Asked by: Carolyn Harris (Labour - Swansea East)
Question to the Department for Digital, Culture, Media & Sport:
To ask the Secretary of State for Digital, Culture, Media and Sport, what recent discussions he has had with the Gambling Commission on social responsibility and money laundering compliance by bookmakers.
Answered by Tracey Crouch
All gambling operators have duties to prevent money laundering under the Gambling Act 2005, Proceeds of Crime Act 2002, and the Gambling Commission’s Licence Conditions and Codes of Practice. Any operators selling services into the British market must be licensed by the Commission, and the licence conditions require operators to assess the money laundering risks to their business and to have controls in place to mitigate them. Operators must also comply with social responsibility and customer interaction requirements to protect vulnerable people.
The Commission conducts suitability checks on the business, all persons relevant to the business and on key management personnel, and has powers to revoke or suspend licences, attach individual conditions to licences and/or impose a financial penalty in the case of failings. The Commission also has powers to launch criminal investigations and bring criminal proceedings against companies and individuals. The Government considers that these powers are sufficient to enforce bookmakers’ compliance with anti-money laundering and social responsibility obligations.
In February 2018 a Gambling Commission investigation into William Hill resulted in a £6.2m penalty package for breaches of anti-money laundering and social responsibility regulations. As part of the regulatory settlement, the Gambling Commission has instructed William Hill to appoint external auditors to review its anti-money laundering and social responsibility measures, and to share learning with the wider industry.
In 2016 the Competition and Markets Authority launched an investigation, which is still ongoing, into online gambling companies’ compliance with consumer protection law. Information on this work can be found on the CMA website: https://www.gov.uk/cma-cases/online-gambling#case-launch. In February 2018 the CMA launched a merger investigation into the proposed acquisition by GVC Holdings plc of Ladbrokes Coral Group plc. Information on this investigation can be found at
https://www.gov.uk/cma-cases/gvc-holdings-ladbrokes-coral-group-merger-inquiry
As a matter of policy, the Gambling Commission does not provide information on ongoing investigations. The outcomes of the Gambling Commission’s enforcement work are published on its website.
The Gambling Commission will continue to take robust and effective action where gambling companies fail to meet their obligations. Ministers and officials have regular discussions with the Gambling Commission on a range of issues.
Asked by: Carolyn Harris (Labour - Swansea East)
Question to the Department for Digital, Culture, Media & Sport:
To ask the Secretary of State for Digital, Culture, Media and Sport, if he will ask the Gambling Commission to launch an investigation into the social responsibility and money laundering compliance by bookmakers as a result of the outcome of the Gambling Commission’s investigation into William Hill.
Answered by Tracey Crouch
All gambling operators have duties to prevent money laundering under the Gambling Act 2005, Proceeds of Crime Act 2002, and the Gambling Commission’s Licence Conditions and Codes of Practice. Any operators selling services into the British market must be licensed by the Commission, and the licence conditions require operators to assess the money laundering risks to their business and to have controls in place to mitigate them. Operators must also comply with social responsibility and customer interaction requirements to protect vulnerable people.
The Commission conducts suitability checks on the business, all persons relevant to the business and on key management personnel, and has powers to revoke or suspend licences, attach individual conditions to licences and/or impose a financial penalty in the case of failings. The Commission also has powers to launch criminal investigations and bring criminal proceedings against companies and individuals. The Government considers that these powers are sufficient to enforce bookmakers’ compliance with anti-money laundering and social responsibility obligations.
In February 2018 a Gambling Commission investigation into William Hill resulted in a £6.2m penalty package for breaches of anti-money laundering and social responsibility regulations. As part of the regulatory settlement, the Gambling Commission has instructed William Hill to appoint external auditors to review its anti-money laundering and social responsibility measures, and to share learning with the wider industry.
In 2016 the Competition and Markets Authority launched an investigation, which is still ongoing, into online gambling companies’ compliance with consumer protection law. Information on this work can be found on the CMA website: https://www.gov.uk/cma-cases/online-gambling#case-launch. In February 2018 the CMA launched a merger investigation into the proposed acquisition by GVC Holdings plc of Ladbrokes Coral Group plc. Information on this investigation can be found at
https://www.gov.uk/cma-cases/gvc-holdings-ladbrokes-coral-group-merger-inquiry
As a matter of policy, the Gambling Commission does not provide information on ongoing investigations. The outcomes of the Gambling Commission’s enforcement work are published on its website.
The Gambling Commission will continue to take robust and effective action where gambling companies fail to meet their obligations. Ministers and officials have regular discussions with the Gambling Commission on a range of issues.
Asked by: Carolyn Harris (Labour - Swansea East)
Question to the Department for Digital, Culture, Media & Sport:
To ask the Secretary of State for Digital, Culture, Media and Sport, what steps the Gambling Commission is taking to ensure bookmakers do not breach anti-money laundering and social responsibility requirements.
Answered by Tracey Crouch
All gambling operators have duties to prevent money laundering under the Gambling Act 2005, Proceeds of Crime Act 2002, and the Gambling Commission’s Licence Conditions and Codes of Practice. Any operators selling services into the British market must be licensed by the Commission, and the licence conditions require operators to assess the money laundering risks to their business and to have controls in place to mitigate them. Operators must also comply with social responsibility and customer interaction requirements to protect vulnerable people.
The Commission conducts suitability checks on the business, all persons relevant to the business and on key management personnel, and has powers to revoke or suspend licences, attach individual conditions to licences and/or impose a financial penalty in the case of failings. The Commission also has powers to launch criminal investigations and bring criminal proceedings against companies and individuals. The Government considers that these powers are sufficient to enforce bookmakers’ compliance with anti-money laundering and social responsibility obligations.
In February 2018 a Gambling Commission investigation into William Hill resulted in a £6.2m penalty package for breaches of anti-money laundering and social responsibility regulations. As part of the regulatory settlement, the Gambling Commission has instructed William Hill to appoint external auditors to review its anti-money laundering and social responsibility measures, and to share learning with the wider industry.
In 2016 the Competition and Markets Authority launched an investigation, which is still ongoing, into online gambling companies’ compliance with consumer protection law. Information on this work can be found on the CMA website: https://www.gov.uk/cma-cases/online-gambling#case-launch. In February 2018 the CMA launched a merger investigation into the proposed acquisition by GVC Holdings plc of Ladbrokes Coral Group plc. Information on this investigation can be found at
https://www.gov.uk/cma-cases/gvc-holdings-ladbrokes-coral-group-merger-inquiry
As a matter of policy, the Gambling Commission does not provide information on ongoing investigations. The outcomes of the Gambling Commission’s enforcement work are published on its website.
The Gambling Commission will continue to take robust and effective action where gambling companies fail to meet their obligations. Ministers and officials have regular discussions with the Gambling Commission on a range of issues.
Asked by: Kelvin Hopkins (Independent - Luton North)
Question to the HM Treasury:
To ask Mr Chancellor of the Exchequer, what organisations are responsible for monitoring and enforcing anti-money laundering laws.
Answered by Steve Barclay - Secretary of State for Environment, Food and Rural Affairs
There are 25 Anti-Money Laundering (AML) supervisors in the UK. These include the Financial Conduct Authority (FCA), HM Revenue and Customs, the Gambling Commission and the 22 accountancy and legal professional bodies listed below:
These supervisors monitor and enforce compliance with AML legislation. This complements the work of law enforcement agencies, including the National Crime Agency, the Serious Fraud Office and local police forces.
The government has reviewed the supervisory regime and is implementing reforms to strengthen it. These include creating a new team – the Office for Professional Body AML Supervision (OPBAS) – within the FCA to help, and ensure, professional bodies provide consistently high standards of supervision. OPBAS will also work across the regime, to facilitate high standards amongst statutory supervisors and strengthen supervisors’ collaboration with law enforcement.
Law enforcement agencies, the FCA, HM Revenue and Customs and the Gambling Commission are subject to the Freedom of Information Act whilst the 22 professional bodies named above are not. The government supports greater transparency to help build public confidence in our regime, and the 2017 Money Laundering Regulations require that all AML supervisors, including the 22 professional bodies, provide information to inform the Treasury’s Annual Supervision Report.
Asked by: Kelvin Hopkins (Independent - Luton North)
Question to the HM Treasury:
To ask Mr Chancellor of the Exchequer, which organisations responsible for monitoring and enforcing anti-money laundering laws are not subject to the Freedom of Information Act 2000.
Answered by Steve Barclay - Secretary of State for Environment, Food and Rural Affairs
There are 25 Anti-Money Laundering (AML) supervisors in the UK. These include the Financial Conduct Authority (FCA), HM Revenue and Customs, the Gambling Commission and the 22 accountancy and legal professional bodies listed below:
These supervisors monitor and enforce compliance with AML legislation. This complements the work of law enforcement agencies, including the National Crime Agency, the Serious Fraud Office and local police forces.
The government has reviewed the supervisory regime and is implementing reforms to strengthen it. These include creating a new team – the Office for Professional Body AML Supervision (OPBAS) – within the FCA to help, and ensure, professional bodies provide consistently high standards of supervision. OPBAS will also work across the regime, to facilitate high standards amongst statutory supervisors and strengthen supervisors’ collaboration with law enforcement.
Law enforcement agencies, the FCA, HM Revenue and Customs and the Gambling Commission are subject to the Freedom of Information Act whilst the 22 professional bodies named above are not. The government supports greater transparency to help build public confidence in our regime, and the 2017 Money Laundering Regulations require that all AML supervisors, including the 22 professional bodies, provide information to inform the Treasury’s Annual Supervision Report.
Asked by: Jon Trickett (Labour - Hemsworth)
Question to the Department for Digital, Culture, Media & Sport:
To ask the Secretary of State for Digital, Culture, Media and Sport, if she will make it her policy to introduce stricter obligations on betting shops to determine the financial capacity of people gambling large sums.
Answered by Tracey Crouch
The Government is clear that gambling operators must comply with Gambling Commission requirements around Anti-Money Laundering (AML) and Social Responsibility in order to determine the financial capacity of individuals. If they fail to do so they risk sanctions including losing their licence to operate. These requirements include the need to deliver effective customer interactions, particularly in relation to 'high value' customers and those most vulnerable. Operators must also have due regard to Gambling Commission advice around 'Duties and responsibilities under the Proceeds of Crime Act 2002' including the Know Your Customer (KYC) requirements which include knowing a customer's source of funds.
Asked by: John McDonnell (Labour - Hayes and Harlington)
Question to the HM Treasury:
To ask Mr Chancellor of the Exchequer, whether HM Treasury has exempted gambling services from The Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017.
Answered by Steve Barclay - Secretary of State for Environment, Food and Rural Affairs
The Government has exempted the gambling sector (except for non-remote and remote casinos) from The Money Laundering, Terrorist Financing and Transfer Funds (Information on the Payer) Regulations 2017 (MLRs). The Government’s reasoning is set out in its consultation response of March 2017 and can be found here:
https://www.gov.uk/government/consultations/money-laundering-regulations-2017/money-laundering-regulations-2017
As per Regulation 16(3)(c) of the MLRs, the Government will keep under review whether providers of gambling services other than casinos should continue to be excluded from the requirements of these Regulations.
Asked by: Lord Lipsey (Labour - Life peer)
Question to the HM Treasury:
To ask Her Majesty’s Government when they intend to announce their policy with regard to the implementation of the EU Fourth Anti-Money Laundering Directive; and what assessment they have made of its impact on the bookmaking sector.
Answered by Baroness Neville-Rolfe - Minister of State (Cabinet Office)
The government will publish a response to its consultation on transposing the EU Fourth Money Laundering Directive, shortly. It will include a draft of the new Money Laundering Regulations and will be open for a four week consultation. The draft regulations will reflect government positions on a number of policies including whether gambling service providers are exempt from the directives requirements.
Asked by: Charles Walker (Conservative - Broxbourne)
Question to the Ministry of Defence:
To ask the Secretary of State for Defence, if he will identify for the purpose of Article 3(9)(F) of the Fourth EU Money Laundering Directive which ranks in the armed services will be classed as high-ranking.
Answered by Lord Lancaster of Kimbolton
The Fourth EU Money Laundering Directive seeks to prevent the financial and certain non-financial sectors from being used for money laundering (the conversion, by various means, of the proceeds of crime into apparently 'clean money') and terrorist financing (the provision or collection of funds used to carry out any terrorist offences).
In addition to the financial sector, the directive applies to certain non-financial sectors including lawyers, notaries, accountants, estate agents, providers of gambling services, trust and company service providers, and to all providers of goods when payments are made in cash in excess of €15,000.
The directive introduces additional requirements and safeguards ('enhanced due diligence') for situations posing a higher risk of money laundering and terrorist financing, for example, trading with correspondent banks situated outside the EU. Amongst those additional requirements is a broader definition of Politically Exposed Persons (PEPs).
Those subject to the directive are required to:
Identify and verify the identity of their customer ('customer due diligence') and of the beneficial owner (person(s) who ultimately owns or controls the customer on whose behalf a transaction is being carried out, e.g. in the case of a company, the owner of a sufficient percentage of the shares or votes), and to monitor their business relationship with the customer,
Report suspicions of money laundering or terrorist financing to the public authorities
Ensure that personnel are properly trained and that appropriate internal preventive policies and procedures are set up.
The Ministry of Defence (MOD) is not a financial institution nor does it fall into the non-financial sector organisations identified by the Directive, and it is not a provider of goods where payments are made in cash in excess of €15,000.
The responsibility of implementing the requirements of the Directive is for the financial sector and the non-financial sectors identified by the Directive and not the MOD.
The new Directive gives additional guidance in dealing with those risks and issues relating to corrupt activities. As with all legislation it cannot differentiate between those nations, sectors and institutions that are more or in the UK's case, less corrupt. What this Directive attempts to do is give those organisations and sectors at risk of money laundering and terrorist finances the ability to make their own judgements as to what they deem as a high risk person (PEP) or transaction. Whilst ambassadors, chargés d'affaires and high-ranking officers in the Armed Forces are included in the Directive as PEP's, the financial institutions in particular will assess their individual risk. In some countries the military are involved and in some cases run the political and governing systems, this makes them a significant corruption risk. The UK, its ambassadors, chargés d'affaires and high-ranking officers carry a lesser risk than some others; it is therefore unlikely that the extended Directive will affect them. But the interpretation of the Directive is for the financial and certain non-financial sectors to interpret.
The MOD takes its responsibility to prevent, detect, deter and investigate fraud (including corruption, money laundering and terrorist financing) very seriously and has undertaken detailed risk assessments to identify its risks, where needed implementing additional preventative and detective controls and undertakes due diligence on its suppliers.
Transparency International publishes a Government Defence Anti-Corruption Index based on 77 indicators which assesses the existence, effectiveness and enforcement of a nation's ability to manage the risk of corruption including money laundering.
The UK MOD scored an 'A' (very low corruption risk) in the 2015 index, the only country to achieve this in the G20 and NATO as well as being one of only two in the world to achieve this.
Transparency International attributed the 'A' to the UK MOD having strong anti-corruption systems underpinned by effective independent oversight mechanisms.
Asked by: Lord Collins of Highbury (Labour - Life peer)
Question to the Department for Digital, Culture, Media & Sport:
To ask Her Majesty’s Government what assessment they made in their recent Evaluation of Gaming Machine (Circumstances of Use) (Amendment) Regulations 2015 of the evidence from the Gambling Commission that 633 cases of suspected money laundering were reported last year in the use of Fixed Odds Betting Terminals; and what conclusions they reached.
Answered by Baroness Neville-Rolfe - Minister of State (Cabinet Office)
Government takes the issue of money laundering in gambling very seriously, including these cases. The Gambling Commission already requires operators to take measures to prevent money laundering through its Licence Conditions and Codes of Practice - and it is currently consulting on proposed regulatory changes to strengthen the fight against crime linked to gambling. In additon, the Treasury is planning to consult on the EU’s forth Directive on Money Laundering, which brings all gambling services within scope of the money laundering requirements.