KSA warns operators over insufficient AML compliance
The Dutch regulator says some operators have not been following money laundering and terrorist financing rules correctly.
The Netherlands.- The national gambling regulator de Kansspelautoriteit (KSA) has sent a warning letter to the Netherlands’ newly licensed online gambling operators over “insufficient” compliance with the country’s Money Laundering and Terrorist Financing (Prevention) Act.
It said its own probes and data from the Financial Intelligence Unit showed some rules were not being followed correctly.
The main concern was that some operators had been failing to check the origin of customer funds, only carrying out checks when players deposited more than €2,500. It said this figure was far too high considering that the average net monthly salary in the Netherlands is around €2,500.
It also said it had observed a lack of compliance with regulations on reporting unusual transactions. Operators have 14 days to inform the Financial Intelligence Unit of all transactions of €15,000 or more in any 24-hour period. However, some operators had not complied with this and others had taken too long to do so.
The KSA said it expected operators to conduct research to identify the sources of players’ funds and warned that it has the power to impose sanctions on operators that don’t comply. It said it would carry out more detailed investigations into two licensees as a result of its initial findings.
“The KSA expects licence-holders to conduct earlier research; this is important from the point of view of preventing gambling addiction and money laundering,”
Dutch regulator investigates gambling ads targeted at young people
Last week, the KSA announced that it was launching an investigation into the targeting of gambling advertising at minors and young people aged between 18 and 24.
While MPs await legislation to clamp down on what they see as a “barrage” of gambling ads since the launch of the regulated online gambling market in October, the KSA says it will request information from licensed operators on whether they have sent ads to minors and young people.
Operators must inform the KSA if they sent emails, bonus offers, push messages or any other communication to under 25s. The KSA has also asked social media companies to report cases of gambling advertising aimed at young people appearing on their platforms. It’s placed a form on its website for reports to be made.
Updating MPs, the Netherlands’ new minister for legal protection Franc Weerwind has called for patience on a ban on untargeted gambling adverts. Weerwind has said that a ban could not be introduced overnight and required legal analysis.
