White Label Company FSB Fined £600,000 by UK Regulator
by Glenn Baird - May 6, 2020
The UK Gambling Commission has taken regulatory action against FSB Technology, using the £600,000 fine as an opportunity to remind all white-label services that they are responsible for the conduct of their subsidiaries.
FSB were hit with the fine after it was discovered that they had failed in their responsibility to manage one of their third party websites.
After conducting an investigation the UKGC discovered that a partner of FSB Technology had failed to meet industry standards relating to customer interactions, anti-money laundering laws, inappropriate advertising and a failure to support problem gamblers through effective self-exclusion measures, between January 2017 and August 2019.
Richard Watson, Commission Executive Director, said: “All operators should pay close attention to this case as it shows that we hold all licensees fully responsible for third party relationships – and we will act against any of our licensees that do not manage third parties appropriately.
“These were blatant breaches of rules we have put in place to ensure gambling is fair, safe and crime-free.”
The UKGC goes on to state that along with the £600,000, further restrictions will be placed on FSB’s licence.
Some specifics of the case have been published on the Commission’s website highlighting the following failings:
Ineffective customer interactions with, and source of funds checks on, a customer who displayed indicators of problem gambling and spent £282,000 over an 18-month period
Sending a marketing email to 2,324 customers who had previously self-excluded
A VIP team manager acting without adequate oversight and not receiving sufficient AML training
Placement of an inappropriate banner advertisement containing cartoon nudity on a Great Britain facing website which was providing unauthorised access to copyrighted content.