The Dutch gambling authority has warned operators that are not paying attention to several legal matters, including anti-money laundering and counter-terrorism financing laws. [Image: Shutterstock.com]
Tracking the money
The Dutch gambling authority, known as the Kansspelautoriteit (KSA), has warned iGaming operators they are not putting enough emphasis on anti-money laundering (AML) and counter-terrorism financing (CTF) laws.
the findings suggested that “various obligations are insufficiently complied with”
The warning was issued after a KSA investigation into operators’ acquiescence with the Netherlands’ Money Laundering and Terrorism Financing Act. Per the regulator, the findings suggested that “various obligations are insufficiently complied with.”
The largest takeaway from the sample was that operators do not have enough knowledge of the origin of patrons’ money; this presents another serious issue in the Netherlands’ struggle to balance gambling legislation with legal practices.
Findings from the investigation
The KSA felt that gaming agencies were not showing a fair level of concern over the wagers they were accepting. This, they said, extended to smaller deposits, which could still be fraudulent.
“Many online gambling providers only see a reason to check whether this is compatible with a player’s income when deposits are much higher than €2,500 ($2,628),” said the KSA.
The Netherlands has had its fair share of issues regulating gaming, and this is just the latest example. Previous battles included legislative debate over the prevalence of television advertisements, which resulted in nixing outdoor, radio, and print ads.
The Dutch police have also partnered with the KSA to investigate legal infractions, recently busting an illegal gambling ring.
the KSA expects operators to pay closer attention to deposits
Given the preexisting context and resultant findings from the investigation, the KSA expects operators to pay closer attention to deposits.
“The KSA therefore expects license holders to conduct earlier research,” said the regulator. “This is important from the point of view of preventing gambling addiction and money laundering.”
The KSA stated that it will further investigate two licenses in response to their earlier inquest.
Repercussions from the KSA
The Dutch market only opened last October and is only amazing further problems.
Another issue identified by the KSA was centered around reporting or lack thereof. The regulator feels that not all obscure transactions have been reported to the (FIU) as they should. Any suspicious activity must be reported “as quickly as possible” and within 14 days, by governing rules.
The governing body summed up its activity by stating that licensees need to operate with extreme caution or face punishment.
“The KSA has sent a warning to the online market pointing out the identified shortcomings, including those mentioned above. If further investigation shows that shortcomings continue, the KSA can impose sanctions.”