The UK Gambling Commission has advised online gambling licensees of its compliance expectations when withdrawing funds from customer accounts.
Noting that the regulator included withdrawal delays as an action item in its annual business plan, CEO Andrew Rhodes said it continues to receive around 2,000 complaints a year on the issue.
Rhodes said the regulator had ordered operators to amend terms and conditions to require identity verification before customers make deposits, avoiding delaying this until the customer tries to withdraw funds. He warned that introducing friction into the withdrawal process or putting commercial interests ahead of customer interests constituted breaches of regulations.
Operators often fail to explain why they request additional information from customers, often citing vague “regulatory purposes,” according to the regulator.
Rhodes emphasized that the regulator will continue to monitor compliance, insisting that licensees provide clear guidance and fair terms for requesting customer information and for procedures related to withdrawal delays and fund forfeitures. The regulator also noted instances where operators attempt to seize a customer’s entire deposit balance, either due to suspicions of criminal activity or perceived violations of their own terms and conditions.
It says operators must comply with Proceeds of Crime Act 2002 (POCA) rules by reporting known or suspected money laundering to the NCA and waiting for consent before proceeding with transactions. Confiscation or recovery of funds without filing a Suspicious Activity Report (SAR) and obtaining a Anti-Money Laundering Authorization (DAML) may result in violations of the POCA or the Terrorism Act 2000.
Noting that the regulator included withdrawal delays as an action item in its annual business plan, CEO Andrew Rhodes said it continues to receive around 2,000 complaints a year on the issue.
Rhodes said the regulator had ordered operators to amend terms and conditions to require identity verification before customers make deposits, avoiding delaying this until the customer tries to withdraw funds. He warned that introducing friction into the withdrawal process or putting commercial interests ahead of customer interests constituted breaches of regulations.
Operators often fail to explain why they request additional information from customers, often citing vague “regulatory purposes,” according to the regulator.
Rhodes emphasized that the regulator will continue to monitor compliance, insisting that licensees provide clear guidance and fair terms for requesting customer information and for procedures related to withdrawal delays and fund forfeitures. The regulator also noted instances where operators attempt to seize a customer’s entire deposit balance, either due to suspicions of criminal activity or perceived violations of their own terms and conditions.
It says operators must comply with Proceeds of Crime Act 2002 (POCA) rules by reporting known or suspected money laundering to the NCA and waiting for consent before proceeding with transactions. Confiscation or recovery of funds without filing a Suspicious Activity Report (SAR) and obtaining a Anti-Money Laundering Authorization (DAML) may result in violations of the POCA or the Terrorism Act 2000.
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