Spreadex Fined £2 Million for AML and Player Safety Failures

Britain’s Gambling Commission has fined Spreadex £2 million ($2.6 million) after uncovering serious failures in its anti-money laundering and social responsibility procedures. The regulator flagged these issues during a compliance assessment in July 2023.

Good to know

• Spreadex has now been penalised twice by the Commission since 2022.
• The operator must complete a third-party audit of its AML and safer gambling controls.
• One player lost £50,000 in a single month without proper checks.

According to the Gambling Commission, Spreadex failed to meet its obligations between September 2022 and November 2023. The company’s assessment of money laundering and terrorist financing risks lacked key factors, such as customer behavior, geography, and payment methods.

Spreadex relied too much on what customers said about their financial position. The Commission pointed out that players were allowed to deposit large amounts without submitting proper source of funds documentation.

In one example, a customer deposited £64,000 soon after opening an account. Spreadex did not ask for evidence of the source of funds, and the player went on to lose £50,000 within a month.

Social Responsibility Failures Also Found

Regulators also cited weak social responsibility efforts. One user went over a daily deposit cap of £3,340 a total of 12 times in 14 days, yet received only four automated pop-ups. No human intervention followed, which the Commission said failed to identify possible gambling harm.

John Pierce, Head of Enforcement, called Spreadex’s actions “unacceptable.” He said, “The operator placed undue reliance on customer assurances about the source of funds, rather than obtaining evidence from independent and verifiable sources, as we would expect.”

He added that all operators must act quickly when signs of suspicious or harmful behavior appear and take a broader view when users engage across different gambling channels.

Pierce also said the Commission collaborated with the Financial Conduct Authority in this case and stressed the need for stronger cooperation when customer risk spans multiple regulatory areas.

He warned, “Operators should be in no doubt: repeated regulatory failings will result in escalating enforcement action.”