KSA Calls out Stakeholders on AML and CTF Shortcomings

The Dutch gaming regulator is one of the strictest and it is not inclined to overlook shortcomings in compliance on the part of gambling companies. Over the past months, the Kansspelautoriteit has issued several warnings to unnamed operators and advised on general advertisement practices, but there is more.

Dutch Authorities Unhappy with Gambling Companies Reporting  

Now the KSA believes that stakeholders have been coming short of their obligations to the Money Laundering and Terrorist Financing Act or WWFT for its Dutch acronym. This has prompted the regulator to issue a reprimand and call for action among stakeholders.

The latest development is based on extensive data collected by the regulator and the country’s Financial Intelligence Unit which have established certain breaches that leave the country’s online casinos and sportsbooks vulnerable to exploits by criminals and fall short of agreed-upon licensing standards.

For example, there were operators who failed to check consumers’ funds, as in the origin of money, and many licensees argued that deposits under $2,600 should not be subject to these checks in the first place. The KSA offered a rebuttal and argued that with the average salary in the Netherlands being approximately $2,600, to begin with, these checks were more than necessary.

KYC and AML checks have been mostly worrisome to stakeholders around the globe. While necessary for big and VIP customers, companies have been mostly trying to save them on the “little guy.” However, regulatory standards have been increasing, and “affordability checks” are stricter than ever. In a statement published on its website, the KSA said:

We expect license holders to do timely research. This is important as it helps prevent gambling addiction and money laundering.

KSA

Some stakeholders will also be targeted by the regulator and put through further investigation. At least two will now have to cooperate with the regulator as it seeks to establish how serious those breaches may be.

Overlooking Reporting and Being Tardy

The KSA found other shortcomings. For example, not all operators reported transactions exceeding €15,000 ($15,800) completed within 24 hours. The amount applies to commutative and individual amounts.

There were other shortages as well. For example, some transactions showed as suspicious but there was no timely reporting . The KSA, which has been trying to strike a conciliatory tone, confirmed that should these shortcomings continue to be the case, the regulator will see itself forced to start imposing sanctions.