French Authority Fines Sports Betting Operator Over AML Failures

Highlights

• France’s National Sanctions Committee fined a sports betting operator and two senior executives over AML compliance failures.
• The case involved an account linked to a person listed on France’s national asset-freezing register.

France’s National Sanctions Committee (CNS) has fined a French-licensed online sports betting operator and two senior executives over anti-money laundering and asset-freezing failures.

The operator, identified as GU in the CNS decision, received a two-month suspension from online betting operations. It also received a €20,000 fine.

Meanwhile, the company’s former CEO received a two-month ban from managing activities in the online betting sector. The CEO also received a €20,000 fine. In addition, the operator’s compliance officer received a two-month management ban and a €5,000 fine.

The case began with an account opened on 3 December 2023 for an individual listed on France’s national register of people subject to an asset-freezing order.

GU’s automated systems generated alerts on the same day. However, the operator confirmed the account only on 14 December, 11 days later. GU then closed the account on 4 January after the French gambling regulator, ANJ, notified the company and opened an administrative investigation in January 2024.

The CNS found that GU lacked effective procedures to apply asset-freezing obligations promptly. Furthermore, the operator did not notify the relevant economic authorities about the incident or the related transactions.

The CNS also examined a separate allegation involving transactions without sufficient identity and purpose checks. However, it dismissed that allegation because there was not enough evidence to prove the breach.

French online gambling operators must follow anti-money laundering and counter-terrorist financing rules under the country’s monetary and financial legislation.

The case highlights the need for effective compliance systems, automated monitoring and quick action when operators identify potential financial crime risks.

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