FIAU Issues Total Fines of €236K to Glitnor for Licensing Breaches
The Financial Intelligence Analysis Unit (FIAU), the regulator of Malta, has announced it has issued fines totaling €236,789 to Glitnor Services Limited, the online casino operator, for breaches in betting rules.
The FIAU indicated these breaches were related to failures by the operator to carry out proper risk assessments, arising from a review carried out by the regulator in 2019.
Glitnor operates popular online casino brands including Lucky Casino and Happy Casino and is licensed by the MGA.
Gaming operators in Malta are required to undertake customer identification and verification and the FIAU established that Glitnor had failed to do this on numerous occasions, citing three specific examples where players had deposited and the operator did not the relevant documentation within 30 days.
The Committee was particularly concerned with the company’s issues when it came to ascertaining that the gaming activity entertained by it was in line with the customers’ funding abilities. Furthermore, the company’s inability, at times, to at least cross-check the players’ gaming activity against basic information on the employment and the inability to manage heightened risks of certain customers serviced by it was also a cause of concern for the Committee.
Failed Source of Income Checks
The FIAU contends that when it came to players who deposited large amounts of money with the operator, Glitnor did not carry out the appropriate risk assessments or carry out a source of income check.
The FIAU gave an example of a customer who deposited €61,942 and lost €12,040 over 13 months. Glitnor failed to carry out its legal requirements to investigate with the customer the source of funding their account.
Glitnor had a legal requirement to check if players were politically exposed persons, and the FIAU pointed out that in 80% of the cases, the operator had failed to do this.
Procedures Tightened Up
Glitnor admitted to failing to acquire proof of identification within 30 days and stated it had put automatic measures in place that will raise notifications when a player deposits €2,000.
In light of the fines, the operator has stated it will improve its Business and Customer Risk Assessment procedures to prevent breaches outlined from happening in the future.