Spreadex Fined £2 Million Over Repeated AML and Social Responsibility Failings
Spreadex has been ordered to pay a £2,022,000 penalty following a Gambling Commission investigation that revealed ongoing deficiencies in anti-money laundering (AML) and social responsibility controls. The company will also be subject to a third-party audit to assess whether its policies and procedures now meet regulatory standards.
Failings Identified During 2023 Compliance Assessment
The breaches were identified during a compliance assessment conducted in July 2023 and relate to the period between September 2022 and November 2023. According to the Commission, Spreadex failed to conduct adequate money laundering risk assessments, relied on ineffective AML controls, and did not sufficiently intervene with customers potentially experiencing gambling harm.
In one case, a customer deposited approximately £64,000 over a short period without being asked to verify the source of funds. The same customer went on to lose £50,000 in a single month.
Another instance involved a player hitting the operator’s daily deposit limit of £3,340 twelve times in just two weeks. Despite the clear risk indicators, Spreadex’s only response was to send four automated pop-up warnings — with no human-led intervention.
Repeat Offence Raises Enforcement Stakes
This is the second regulatory action taken against Spreadex in two years. The company previously reached a £1.36 million settlement with the Gambling Commission in 2022 for similar compliance failures. The Commission has now issued a formal financial penalty, indicating a more severe enforcement stance.
“The conclusion of this case marks the second time Spreadex Limited has been subject to enforcement action. Its failure to uphold anti-money laundering standards, delays in necessary interventions, and weaknesses in social responsibility measures were unacceptable”, commented John Pierce, Head of Enforcement at the Gambling Commission/
He added that operators cannot rely solely on customer assurances when assessing affordability and must obtain evidence from “independent and verifiable sources.”
Concerns Over Monitoring Across Regulatory Boundaries
The Commission also criticised Spreadex for inadequate cross-channel monitoring. In at least one case, a customer displaying markers of harm was actively using products governed by both the Gambling Commission and the Financial Conduct Authority (FCA), raising coordination issues.
“We work closely with the Financial Conduct Authority to ensure a coordinated approach. Operators should be in no doubt: repeated regulatory failings will result in escalating enforcement action”, Pierce noted.
The £2 million fine comes as Spreadex continues to face regulatory scrutiny following its acquisition of Sporting Index from FDJ United, the French lottery and gaming operator. That transaction is currently under review as part of a broader competition inquiry.