Dutch licence holders warned over money laundering shortcomings
Netherlands Gambling Authority investigation finds failure to adequately check source of funds among operators
Licence holders in the Netherlands have been warned for failing to adhere to money laundering and terrorist financing regulation in the country.
The Netherlands Gambling Authority (KSA) launched an investigation into the compliance with obligations relating to the Money Laundering and Terrorist Financing (Prevention) Act (WWFT) and found “various obligations” were not being complied with.
The KSA consulted data from the Dutch Financial Intelligence Unit (FIU) in its findings.
The regulator found that operators were not reporting all unusual transaction to the FIU as required to by law.
The KSA also said transactions that were reported were not done so within the established 14-day period.
Additionally, the KSA found operators failed to instigate checks on source of funds from players when depositing large amounts.
Operators were found to only have checked source of funds when players deposited more than €2,500 (£2,104).
The KSA said the average net monthly salary in the country was €2,500 so therefore it expected operators to conduct checks at a far lower threshold.
The KSA also noted that it would initiate further investigations into two licence holders regarding this matter.
The Netherlands Gambling Authority said: “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.”