The Kansspelautoriteit (KSA) has fired warning shots over the heads of two unnamed operators for potential breaches of money-laundering legislation.
Both companies were found to ‘insufficiently complying’ with the terms of the Money Laundering and Terrorist Financing (Prevention) Act (Wwft) following a lengthly investigation.
The KSA – the Dutch Gambling Authority – concluded a preliminary study into compliance obligations earlier this year, determining that the two companies did not control the gaming behaviour of their players to an acceptable level.
Players were able to lose and deposit thousands during a short period of time, without either firm conducting interventions or investigations, the KSA determined.
“Gaming providers must monitor the behaviour of their customers and act on it if there is unusual behaviour,” the regulator detailed.
“Examples of this are when a player suddenly deposits high amounts or when there is a suspicion of match fixing. Such incidents must be reported to the Financial Intelligence Unit Netherlands.
“In its Wwft Guideline, the Ksa previously pointed out the risk of high deposits, even when they come from the player’s bank account. The Ksa is very concerned that gambling addicts commit criminal activities in order to continue gambling.”
The KSA added that its investigation found that ‘many online gambling providers’ only conduct a check when deposits in a player’s account are ‘much higher’ than €2,500.
Spending large amounts on games of chance ‘is only possible for a few people’, the KSA asserted, adding that it expects licence holders to ‘conduct earlier research in order to prevent gambling addiction and money laundering’.
Following the warnings issued, the KSA has detailed that it is ‘starting further investigations into two licence holders in response to the findings’.
Lastly, the authority noted that some online operators are not reporting all transactions, such as those that saw €15,000 deposited within 24 hours despite being obligated to do so under the Wwft.
The authority concluded: “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.”
The warning follows an update from the KSA last month, cautioning operators to avoid a ‘bombardment of advertising’ during the World Cup that starts later this month to avoid potential political and public backlash.