KSA Issues €3M Fine to BetCity for AML Breaches in Netherlands
LISTEN TO THIS ARTICLE:Kansspelautoriteit (KSA), the Dutch Gaming Authority, has announced it has handed out a €3m fine to the Entain-owned gaming operator, Betent and its BetCity brand, for breaches of the Anti-Money Laundering (AML) and terrorist financing regulations.
After an investigation by KSA, the regulator found multiple incidents breached legislation between December 2022 and May 2023.
The fine follows a warning from KSA last year that it intended to investigate gaming operators for AML compliance and would start issuing penalties to companies that were found to have consistently broken gaming regulations.
In September 2022 the KSA contacted Betent and gave the gaming operator instructions on how to meet the compliance requirements for AML promptly. It found that Betent had failed to do this over a subsequent 7-month period, so the KSA was forced to issue the fine.
In May last year, the KSA issued a broad warning to licensed providers that they had to quickly put their AML affairs in order. At the time, we indicated that if research shows that providers are underperforming in the field of the AML, sanctions will be imposed. We are now following up on that. We are now really out of the start-up phase of the market, and that also means that there are no more excuses for some things.
AML Guidance
The guidance from the Dutch Gaming Authority for AML and terrorist financing means gaming operators are required to monitor the transactions of customers and anything unusual must be reported to the Dutch Financial Intelligence Unit (FIU).
To meet the AML legislation in the Netherlands, gaming operators are required to undertake a process of due diligence. Gambling companies are required to perform identity verification on their customers and from their transactions, the gaming operator can create a risk profile for AML.
The Dutch regulator states in the penalty notice that it believes that Betent has been ‘lax’ when looking into the source of income of its clients. There were many instances when the gaming operator had failed to investigate large bets from its customers. KSA also reiterated that Betent was one of the gambling companies that the regulator had issued a warning to, regarding their behavior concerning AML measures.
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