KSA aplica multa de US$ 3,7 milhões à BetCity, da Entain, por falhas de AML e CFT.

Entain’s BetCity receives fine for failures of almost 4 million dollars.

Under the Dutch Money Laundering and Terrorist Financing (Prevention) Act (Wwft), operators are obliged to monitor customer transactions and report any unusual activities to the Dutch Financial Intelligence Unit (FIU).

Dutch regulator Kansspelautoriteit said it initially ordered BetCity‘s parent company Betent to follow AML/CFT guidelines in September 2022 after identifying several violations.

KSA also provided instructions to BetCity on how to correct the identified issues.

Between December 2022 and May 2023, KSA double-checked whether the company followed the guidelines.

But it continued to find several deficiencies when investigating customer transactions.

The KSA said AML/CFT investigations were only initiated late.

Meanwhile, Betent was also negligent in requesting documentation on sources of funds from customers.

Furthermore, in several cases, Betent did not timely report unusual transactions to the FIU.

Therefore, in response, Betent argued that it predominantly complied with the requirements.

Furthermore, the lack of reporting of transactions to the FIU was attributed to a software error, while the operator also highlighted that it has taken steps to improve in this regard.

No more excuses

However, for the president of Saudi Arabia, René Jansen, these actions fell short of what was necessary.

“In May last year, the KSA issued a broad warning to licensed suppliers.

The notice said that they needed to quickly get their Wwft affairs in order.

“We therefore indicate that if the investigation shows that suppliers are performing unsatisfactorily in the Wwft domain, there will be sanctions. We are now following this up.”

Jansen continued: “We are really out of the early stage of the market.”

And he concluded: “and that also means that there are no more excuses for some things.”

Entain Acquisition

Entain announced the agreement to acquire BetCity’s parent company Betent in June 2022, but the acquisition was only completed in January 2023.

The operator highlighted today that it was aware of KSA’s September 2022 instructions before completing the acquisition.

Entain also stated that the legal documentation relating to the acquisition contains customary contractual protections.

“Following completion, Entain began implementing improvements to BetCity’s procedures and control structures.”

“It has fully cooperated with the KSA investigation and is committed to working with regulators in all of its markets to ensure the highest standards of player protection,” the operator added.

Entain’s BetCity receives fine for failures

KSA’s latest fine adds to the series of regulatory setbacks faced by Entain.

Last week, Entain confirmed its agreement with the Crown Prosecution Service (CPS) regarding previous operations in Turkey.

Entain agreed to pay a financial penalty of US$740 million, make an additional charitable donation of US$25 million and pay a contribution of US$12.65 million to cover the legal costs of the case.

Entain Plc (ENT.L) is trading at GBp792.70 (-1.26%)