End of last year, the parent companies of BetCity (Betent B.V.) and Kansino (Play North Limited) received an official notice from the Dutch Gaming Authority for violations of the Dutch Anti-Money Laundering and Counter-Terrorism Financing Act (Wet ter voorkoming van witwassen en financieren van terrorisme - Wwft).
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End of last year, the parent companies of BetCity (Betent B.V.) and Kansino (Play North Limited) received an official notice from the Dutch Gaming Authority for violations of the Dutch Anti-Money Laundering and Counter-Terrorism Financing Act (Wet ter voorkoming van witwassen en financieren van terrorisme – Wwft).
The online casinos received these notices because investigations showed that players are losing a lot of money without a proper investigating of the origin of it. Also, not all cases were reported to the Financial Intelligence Unit (FIU). BetCity and Kansino were given three months to comply with the designation received in November 2022; if the casinos did not sufficiently comply with the designation, they were subject to a penalty payment.
Now the Dutch regulator concluded that the gambling sites had committed three violations of the Wwft Act.
The three main points were as follows:
- Article 3. Violation to carry out continuous monitoring of their business relationships and the transactions made during those relationships, including the monitoring on the risk profile and the examination of the source of funds used during the relationship or transactions.
- Article 3. Violation on the ability to demonstrate and adapt customer due diligence to the risk sensitivity to money laundering or terrorist financing of the customer type, business relationship and transaction.
- Article 16. Violation to notify the Financial Information Unit on any unusual transactions made or planned to be made after the unusual nature of the transaction has become known.
As far as it is known, neither of them has received a penalty payment to date. Moreover, BetCity was fined €400,000 in April 2023 for sending advertising to young adults.
This case is a reminder that gambling companies, just like financial institutions, have a duty to carry out extensive KYC and AML checks. If the required customer due diligence processes are not properly followed, there is a risk of severe penalties.
With our KYC & Due Diligence system and our Case Management solution, we make sure that you collect the information you need to validate the risk profiles of your customers.
Take a closer look at our Case Management solution.