by Mateusz Mazur

BetEnt Incurs €3 Million Fine from Dutch Authority for AML Inadequacies

The Dutch gambling authority, De Kansspelautoriteit (KSA), has levied a significant fine of €3 million ($3.27 million) against BetEnt BV, owned by Entain and operating in the Netherlands as BetCity.

This action was taken in response to the company’s failure to comply with anti-money laundering (AML) and terrorist financing regulations stipulated under the Money Laundering and Terrorist Financing Act (WWFT).

Background of Non-Compliance

Despite initial guidance by the KSA in September 2022 on customer monitoring protocols, further investigations from December 2022 to May 2023 revealed BetEnt’s continued non-compliance.

The company was found lacking in its obligation to monitor and report unusual transactions to the Dutch Financial Intelligence Unit (FIU), with delays in investigating suspicious activities and failures in establishing the source of funds.

Statement from KSA’s Chairperson

René Jansen, the chairperson of the KSA, highlighted the seriousness of these breaches. He emphasized that the authority had previously warned licensed providers to rectify their WWFT cases and that the current market phase leaves no room for such infractions.

Earlier in the year, BetEnt faced a €400,000 fine for targeting young adults in its marketing campaigns. These fines contribute to a substantial total of over €400 million ($433.9 million) in fines for 2023, with KSA’s fines accounting for nearly €23.4 million ($25.5 million).

This figure represents a significant year-on-year increase, following the trend of rising gambling industry fines as reported by USA-Casino.com.

Our Comment on the Article

The hefty fine imposed on BetEnt by the KSA marks a significant moment in the enforcement of gambling regulations, particularly concerning AML and terrorist financing. This decision underscores the stringent approach of regulatory bodies like the KSA in maintaining high compliance standards within the gambling industry.

It also serves as a stark reminder to other operators in the market about the potential consequences of non-compliance. As the gambling industry continues to evolve, the role of regulatory authorities in ensuring adherence to legal and ethical standards becomes increasingly crucial. This incident not only reflects the heightened vigilance of these bodies but also reinforces the importance of responsible operations within the industry, prioritizing both legal compliance and the protection of public interest.

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