Online betting exchange and sports betting company Smarkets must pay a financial penalty of £630,000 after the Gambling Commission found a series of anti-money laundering and social responsibility failings.

The industry regulator said the failures included customers being allowed to gamble without adequate source of funds checks being carried out and not identifying and interacting with customers at risk of experiencing harm.

One customer was allowed to deposit £395,000 in a four-month period without the appropriate source of funds checks being carried out, while one individual transferred “significant” levels of funds between accounts without scrutiny or source of funds checks occurring.

Smarkets also received a formal warning and will undergo an audit to ensure it is effectively implementing its anti-money laundering and social responsibility policies.