Dutch gambling authority reveals anti-money laundering failures
The Dutch Gambling Authority (Kansspelautoriteit, or KSA) has issued warnings to three gambling operators for failing to comply with anti-money laundering legislation. The KSA cited multiple violations uncovered during an in-depth investigation.
In a statement released on July 24, the regulator said: “The KSA has given three providers a formal instruction under the Anti-Money Laundering and Anti-Terrorist Financing Act (Wwft). The investigation shows that they have not complied with the (guidelines of the) Wwft.”
The authority did not name the companies involved, nor did it publish the details of the infractions. Under Dutch law, the KSA is not permitted to make such enforcement actions public until they become final and legally binding.
Still, the regulator was clear about the seriousness of the breaches, noting: “With the instructions that the KSA is now giving, providers are ordered to comply with the guidelines of the Wwft and to end the violations.” If the operators fail to take corrective action, the KSA warned that “a more severe sanction may be imposed, for example an order subject to a penalty or a fine.”
The KSA is the designated supervisor for gambling-related compliance with the Wwft, a law designed to prevent the use of financial systems for money laundering and terrorist financing. As part of that responsibility, gambling operators must monitor player transactions and report unusual financial activity to the Dutch Financial Intelligence Unit (FIU).
Market-wide weaknesses prompt call to action
The authority’s latest findings are not limited to isolated incidents. According to the KSA, the breaches reflect systemic issues across the Dutch gambling market.
“The KSA sees across the market that there are still things to improve in the area of the Wwft and calls on providers to be vigilant about this,” the statement reads.
The KSA’s investigation into the three operators involved a comprehensive request for internal documents, including risk assessments, player files, and internal Wwft policy documents. It found shortcomings in several key compliance areas. One of the more troubling discoveries was the lack of scrutiny applied to the source of players’ funds.
“Among other things, the KSA sees that providers do not always conduct extensive investigations into the source of players’ funds,” the regulator said.
In addition, the regulator noted failures in how operators classify player risk levels and how they adjust their monitoring accordingly. “There are also shortcomings in the area of risk classification of players and the coordination of measures accordingly,” the KSA stated.
To support operators in meeting their obligations, the KSA has previously offered a range of guidance materials and events. These include a Wwft-focused webinar held in late 2024, where the legal standards were explained and best practices shared. The authority also updated its Wwft Guidance in 2023, incorporating “its own research, signals from consumers and suggestions from providers.”
The KSA, however, expressed concern that compliance remains inconsistent. “An important goal of the KSA is combating illegality and crime. In this context, the KSA also supervises compliance with the Wwft by gambling providers.”
Regulatory pressure mounts as channelisation rates go down
In a separate initiative, the KSA uncovered multiple cases of illegal advertising targeting vulnerable consumers, including promotions that bypass the national self-exclusion register, Cruks. The regulator called such practices “extremely harmful.”
In those instances, it imposed weekly fines of €75,000 on three companies and pledged to escalate enforcement through referrals to other Dutch regulatory bodies, including the Authority for Consumers and Markets (ACM) and the Dutch Advertising Code Foundation (SRC).
