The Netherlands Gambling Authority, known as KSA, has issued a warning to TOTO Online for not following the country’s anti-money laundering rules. The company runs popular gambling services under its TOTO and Winnitt brands. KSA said the business did not fully meet the standards required under the Money Laundering and Terrorism Financing (Prevention) Act, which is often called Wwft.

The warning focuses on how TOTO Online monitors clients and their transactions. After checking clients at the start, businesses are expected to continue watching transactions and update risk levels if needed. KSA said the company “does not sufficiently document why new facts or events do not lead to an adjustment of client risk classifications and why it takes certain control measures.”

Issues With Monitoring and Investigations

The Dutch regulator also said that TOTO Online’s checks on where players’ money comes from are not strong enough. Gambling companies are expected to carefully examine unusual deposits or changes in how people bet. According to KSA, “Gambling providers are required to monitor and investigate gambling behaviour if necessary, such as in the case of sudden large deposits.”

The agency also reminded operators about earlier guidance, saying that the Wwft Guidelines “points out the risks of large deposits, even when they come from the player’s own bank account.” This shows that regulators want companies to be extra careful whenever there are sudden changes in a player’s funds, even if the money comes from their own account.

KSA’s warning means that TOTO Online needs to make big improvements in how it tracks and documents client activity and money. The company did work with the regulator during the investigation, but there were still some problems that needed to be fixed.

Cooperation and Next Steps

The regulator acknowledged that TOTO Online worked with the investigation, and some of the issues were resolved before KSA issued the formal notice. However, the business still has work to do. The warning includes an order for the company to fix the remaining problems within six months. After this period, KSA plans to conduct another inspection to make sure all issues have been addressed.

KSA’s Enforcement Record

This is the first time since November that the KSA has issued a warning to a gambling operator for potential money laundering problems. Previously, the regulator warned the parent company of ComeOn for several shortcomings in its money laundering systems. KSA’s actions show a growing focus on making sure gambling companies comply with the rules to prevent financial crimes and protect players.

TOTO Online now faces a tight timeline to improve its compliance measures and document its processes properly. Failure to meet the requirements could lead to more serious regulatory actions in the future.