Netherlands warns three operators for breaching anti-money laundering and terror financing rules

The Kansspelautoriteit (KSA), the regulatory body overseeing gambling in the Netherlands, has issued formal warnings to three licensed gambling operators regarding their compliance with the Money Laundering and Terrorist Financing (Prevention) Act, known as WWFT.

A recent investigation by the KSA found that these operators were not entirely meeting the compliance expectations outlined under this legal framework. The KSA emphasised its mandate that licensed online casinos must not facilitate criminal activities, and stressed the need for proper customer verification processes and transaction monitoring.

The KSA stipulates that gambling platforms must actively report any suspicious activities to the Financial Intelligence Unit (FIU). During their inspection of the three unnamed companies, investigators requested detailed documentation related to customer data and risk assessments. This inquiry resulted in the identification of several compliance breaches, prompting the KSA to issue strict warnings to the involved parties.

In addition to the warnings, the KSA outlined clear instructions on the necessary steps the operators must take to remedy their non-compliance. These expectations are reinforced by the terms of the gambling licences that allow these companies to operate legally within the Dutch market.

The KSA also cautioned that any future violations could lead to significant fines or additional penalties for the operators. While the KSA has not disclosed the names of the affected operators or specifics of the violations, it acknowledged that the gambling industry as a whole could benefit from improvements in adhering to anti-money laundering standards.

In a related context, earlier this month, the KSA issued a notice to the parent company of Kansino and BetCity due to its failure to adequately verify the source of funds for specific player accounts and to conduct appropriate risk classifications of its customers. This incident followed a general warning issued to all approved casino platforms in December 2022.

The KSA remains vigilant in its oversight of the Dutch gambling sector. The regulator recently took action against influencer LeftlanePapi for disregarding a previous directive to remove content promoting illegal online gambling sites. This underscores the KSA's commitment to enforcing compliance and maintaining the integrity of the gambling market in the Netherlands.