Dutch Gambling Regulator Steps Up AML Scrutiny with Warning to TOTO Online

The Netherlands Gambling Authority (KSA) has stepped up its enforcement of anti-money laundering rules in the online gambling sector, issuing a formal warning to TOTO Online after identifying multiple shortcomings in the operator’s compliance with national AML legislation.

The regulator said TOTO Online failed to fully comply with obligations under the Money Laundering and Terrorism Financing (Prevention) Act, particularly in relation to the ongoing monitoring of customer relationships and transactions after initial due diligence had been completed.

According to the KSA, several cases showed that the operator did not adequately record why new information or changes in player behaviour did not result in revised risk assessments or the introduction of additional control measures.

Concerns were also raised about how TOTO Online investigated the source of players’ funds.

The authority pointed to weaknesses in the operator’s handling of sudden, high-value deposits, noting that these transactions were not always sufficiently examined, even when the money came directly from a player’s personal bank account. The KSA reiterated that such deposits can still pose an increased risk of money laundering and therefore require careful scrutiny.

TOTO Online, which runs the TOTO and Winnitt brands, cooperated with the regulator throughout the investigation. The KSA confirmed that some of the identified breaches were remedied before the formal warning was issued, but stressed that a number of compliance deficiencies remain outstanding.

As part of the enforcement action, the regulator has instructed the operator to resolve all remaining issues within a six-month period. Once this deadline has passed, the KSA will carry out a follow-up inspection to determine whether adequate corrective measures have been put in place.

The warning marks the KSA’s first enforcement action for suspected AML failures since November, when it issued a similar notice to the parent company of ComeOn over weaknesses in its anti-money laundering controls. The latest decision underlines the regulator’s continued emphasis on robust AML compliance as a fundamental requirement for licensed operators operating in the Netherlands’ increasingly established and closely regulated online gambling market.

By fLEXI tEAM