Spreadex : repeated breaches
•
20 May 2025 •
Reading time: 2 minutes On 15 May 2025, the UK Gambling Commission imposed a fine of £2.022 million (approximately €2.4 million) on Spreadex Limited, operator of the Spreadex.com platform. This penalty follows a compliance assessment carried out in July 2023, which revealed significant failings in terms of anti-money laundering (AML) and social responsibility.
Serious failings in the fight against money laundering
The investigation highlighted a number of shortcomings in Spreadex’s AML procedures:
- Inadequate assessment of money laundering and terrorist financing risks, failing to take into account the risks associated with customers, products, geographical areas and payment methods.
- Over-reliance on customer declarations of their financial situation, without independent verification of sources of funds.
- Failure to request proof of the source of funds, even when large deposits were made.
For example, one customer was able to deposit around £64,000 (€76,000) in a short space of time without providing proof, losing £50,000 (€59,000) in a month.
Insufficient interaction with at-risk customers
On social responsibility, Spreadex failed to identify and intervene with customers showing signs of problem gambling. One customer reached his daily deposit limit of £3,340 (€3,900) 12 times in 14 days, receiving only four automated pop-up messages with no human interaction.
A worrying history
This is not the first time Spreadex has been penalised. In 2022, the operator already paid £1.36 million (around €1.62 million) as part of a settlement for similar failings.
John Pierce, head of enforcement at the Gambling Commission, said:
‘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.’
Closer monitoring to come
In addition to the fine, Spreadex will have to undergo an independent audit to assess the effectiveness of its anti-money laundering and responsible gambling policies and procedures. This measure is designed to ensure strict compliance with current regulations.