The French National Sanctions Committee (CNS) has taken action against a French-licensed online sports betting operator, known as GU, as well as two of its key executives due to failures in complying with money laundering and terrorist financing laws.
In a decision announced in July, the CNS imposed fines and imposed suspensions on GU along with its former CEO, referred to as Monsieur AB, and compliance officer, Madame BG. The case drew attention from the French gambling regulator, the L'Autorité Nationale des Jeux (ANJ), which initially raised the concerns with the CNS last year.
As part of the sanctions, GU is facing a two-month suspension of its online betting operations and a fine of €20,000. Monsieur AB received a two-month ban from managing online betting activities, along with a €20,000 fine. Madame BG, the compliance officer, was also banned for two months and fined €5,000. Notably, no sanctions were issued against GU's legal officer or its owner, who is also its major shareholder.
The CNS noted that GU had a significant failure in its operational responsibilities, which allowed an account to be opened for an individual listed on the national asset-freezing order register on December 3, 2023. Despite automated alerts being triggered on that date, GU confirmed this account only after an 11-day delay, on December 14, 2023. After an inquiry was initiated by the ANJ on January 3, 2024, GU closed this account the following day.
The CNS highlighted that GU fell short in two critical areas: first, the operator did not maintain effective systems to immediately apply asset-freezing obligations, which constitutes a breach of French monetary and financial laws. Furthermore, the company failed to notify the relevant economic minister about the asset-freezing incident on both the day the account was opened and after its closure.
The CNS dismissed one other allegation regarding the acceptance of transactions without verified identities, citing a lack of evidential support. French online gambling operators are subject to strict anti-money laundering and counter-terrorism financing regulations, particularly outlined under the monetary and financial code.
Earlier this year, the ANJ provided a practical guide to help licensed online operators strengthen their ability to identify and respond to incidents of player fraud while maintaining compliance with existing regulatory frameworks. The guide encouraged operators to enhance their operational standards and keep thorough documentation.
