The KSA recently investigated TOTO Online operations – TOTO and Winnitt – discovering violations of the Netherlands’ Money Laundering and Terrorism Financing (Prevention) Act (Wwft).
In response, the Dutch lottery Nederlandse Loterij, the parent company of TOTO Online, said in a statement that it wants to work with the KSA to combat money laundering and has worked with the regulator to improve its operations, a position that was echoed by the KSA.
The operator will also improve its customer due diligence by reassessing player files and making further changes where required.
“TOTO acknowledges the importance of effective supervision by the KSA. We continuously work to strengthen our position as the safest and most responsible operator, including with regard to anti-money laundering compliance.
“Together with the KSA, we are committed to achieving the best possible results in combating money laundering. In consultation with the Ksa, TOTO has already further tightened its processes, procedures and work instructions during the course of the investigation.
“As a result, we meet the regulatory requirements with regard to risk assessment, transaction monitoring and verification of the source of funds used, as is to be expected of us.
“The KSA has also indicated that our customer due diligence should be further improved. We are therefore reassessing player files and will take additional measures where necessary.”
Monitoring and documenting failures
According to the KSA, the investigation discovered that TOTO Online “failed to comply with the ongoing monitoring of business relationships and their transactions”, which is a requirement after initial client due diligence.
In addition, the regulator said the operator “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”, while also the investigation into player funds origins was inadequate.
While improvements have since been made by TOTO Online, a timeline of six months has now been set for the operator to resolve the outstanding violations, after which the KSA will conduct a re-inspection of its operations.
