Inadequate Customer Due Diligence Identified
The KSA investigation into Tulipa’s operations revealed that the company’s customer due diligence procedures are “inadequate.” The regulator found that risk classifications are not being applied correctly and that the monitoring of transactions and players’ money origin was insufficient.
Under Wwft guidelines, licensed operators must monitor player transactions and report unusual transactions to the Dutch Financial Intelligence Unit (FIU). The regulations require operators to properly investigate the source of players’ funds and maintain appropriate risk classification systems for customers.
Second Regulatory Action in Two Weeks
This notice follows a separate warning issued to ComeOn’s Godwits Limited entity last week. The KSA criticized Godwits for “poor customer service accessibility” following the market reentry of evoke’s 888 brand, which ComeOn operates in the Netherlands.
The previous warning highlighted an “exceptionally high number of reports from players indicating that customer service was unavailable or difficult to reach.” The regulator also noted that welcome bonuses were not being automatically awarded to players, who had to contact customer service to receive them. Godwits has since resolved these technical issues.
Dutch Regulatory Requirements
Licensed operators in the Netherlands must provide a Dutch-language customer service option to meet duty of care standards for local players. This ensures players can reach out with questions or concerns about their gambling behavior in their native language.
The KSA has set a deadline for Tulipa to address the AML compliance violations. Once the deadline passes, the regulator will conduct a follow-up inspection to verify compliance.
Broader AML Enforcement Context
The action against Tulipa is part of a broader KSA enforcement initiative targeting AML compliance. Earlier this year, the Dutch regulator confirmed it had issued three unnamed operators with instructions related to the Wwft after investigations found operators were not thoroughly investigating the source of players’ funds and had shortcomings in risk classification procedures.
The KSA released comprehensive Wwft guidelines for operators following a webinar at the end of last year that explained legal standards and best practices. The guidelines were updated in late 2023 based on research, consumer feedback, and provider suggestions.
ComeOn Group has been contacted for comment on the notice issued to Tulipa by the KSA.
Source: Kansspelautoriteit
