According to SGA, Kindred has failed to meet Enhanced Due Diligence requirements and has not taken sufficient steps to assess the risk that its services are being used for money laundering and terrorist financing.
The investigations conducted by SGA cover the period from January 2019 to February 2022. Since 2021, Kindred has implemented several improvements to further strengthen its processes. These include, among others:
- Enhanced AML procedures, including Enhanced Due Diligence procedures. For example, any customer deemed to be at risk is required to submit bank statements, and failure to comply will result in account closure and a Suspicious Transaction Report (STR) being sent to the financial police if necessary.
- Introduced financial indicators and backstops based on recurring income for high-risk customers
- Extended and in-depth customer risk assessments, which include detailed transaction and game review, as well as assessment of product risk, affordability risk and risks related to payment methods used
- Increased the number of risk-assessed customers and Suspicious Event Reports (STR) sent to the financial police
- We expanded the AML team to manage the increased requirements related to the proper identification and management of customer risks
Kindred fully shares SGA’s commitment to preventing money laundering and terrorist financing. Anti-money laundering (AML) is a priority in Kindred’s compliance and sustainability framework. Kindred would like more clarity from the SGA agreement and legislation on which objective and effective AML risk parameters should be taken into account when assessing the customer’s risk profile.
Kindred also notes SGA’s view that improved processes have been implemented since the study was conducted and are now compliant.
Kindred will consider a possible appeal of the warning and penalty fee.
HT
Source: Kindred