The Dutch gambling authority, Kansspelautoriteit (KSA), has issued a formal instruction to TOTO Online BV following an investigation that revealed violations of the Money Laundering and Terrorism Financing (Prevention) Act (Wwft).
TOTO Online, a subsidiary of the state-owned Nederlandse Loterij, operates the TOTO and Winnitt brands in the Netherlands.
Failures in Due Diligence
In a statement released on December 24, the KSA concluded that TOTO Online “failed to comply with the ongoing monitoring of business relationships and their transactions.” The regulator criticized the operator for inadequate documentation regarding client risk classifications. Specifically, the KSA noted that the operator “does not sufficiently document why new facts or events do not lead to an adjustment of client risk classifications,” and found its investigations into the origins of player funds to be insufficient.
Corrective Measures Ordered
Despite the censure, the KSA acknowledged that TOTO Online cooperated fully with the investigation and had already resolved several identified violations before the instruction was issued. The operator has been given a six-month deadline to rectify the remaining compliance gaps, after which a re-inspection will occur.
This action follows a similar warning issued last month to SCGO Limited regarding its Vbet operations. In that case, Vbet was also found to have shortcomings in its risk assessment protocols. A spokesperson for SCGO stated, “Vbet fully supports the licensing objectives of the Netherlands… The matters identified during the review have already been addressed.”
These consecutive enforcement actions underscore the KSA’s increasing rigor in ensuring licensed operators maintain strict anti-money laundering protocols.
