28.06.2023

by Mateusz Mazur

Glitnor Group fined by FIAU for operational deficiencies

Glitnor Group, a company based in Malta, has received an administrative penalty of €236,789 from the Financial Intelligence Analysis Unit (FIAU) due to significant operational deficiencies.

Glintor fined by FIAU

In 2019, a compliance review was conducted by FIAU, which disclosed that Glitnor Services, the company’s B2C division holding multiple MGA licenses, did not properly verify the income sources of several players.

As per the review, Glitnor failed to carry out the required risk evaluations for its operations. The company didn’t furnish any risk assessment records for the transfer of clients surpassing €2,000, and it failed to secure evidence of identity and address for three clients within the legally stipulated 30-day timeframe.

In addition, Glitnor was found to have handled eight medium-risk players without properly acquiring the necessary source of wealth or source of funds information. The company also neglected to thoroughly examine seven other players and verify the legitimacy of the funds they deposited.

Red flags

Glitnor failed to monitor some of its clients for an extended period, despite warning signs such as substantial deposits and considerable losses. Additionally, the company neglected to perform politically exposed person (PEP) checks for 80% of cases.

Glitnor showed a willingness to work together and resolve the issues, but the FIAU pointed out that the company didn’t meet its responsibilities in preventing money laundering and terrorism financing.

It is essential to have strong compliance measures in place within the iGaming industry. The recent penalty serves as a reminder of this. Effective risk assessments and thorough verification procedures are necessary to prevent money laundering and other illicit activities.

Related posts