Maltas’ FIAU Fines Glitnor Group €236,789 For Serious AML Breaches

Updated On Jun 30, 2023 by Ella McDonald

Malta's Financial Intelligence Analysis Unit fines Glitnor GroupSummary:

  • Malta’s Financial Intelligence Analysis Unit issued the fine following a compliance review in 2019
  • The fine stems from Glitnor’s failure to carry out sufficient CRA procedures on players, among other violations
  • Glitnor will now have to follow a remediation plan to improve its CRA policies

Malta’s financial crimes watchdog, the Financial Intelligence Analysis Unit (FIAU), has fined Glitnor Group for violating the country’s anti-money laundering laws. The iGaming operator breached multiple provisions of the Prevention of Money Laundering Act (PMLA), resulting in a €236,789 penalty.

Deficient CRA Procedures

Glitnor Group operates several online gaming brands around the world via its B2C unit Glitnor Services Limited which was the subject of a compliance review by the FIAU in 2019. The probe uncovered numerous violations, including serious non-compliance with customer risk assessment (CRA) policies.

The FIAU found that the company allowed many customers to play on its platform without verifying the source of their income. Some players were allowed to deposit huge amounts of money within a short period without intervention from the operator. Glitnor also failed to carry out identity verification on certain players which is a requirement under Malta’s gambling laws.

Glitnor did not conduct CRA on all players covered by FIAU’s compliance review which was considered a serious breach of its regulatory duties.

The FIAU concluded that the company’s CRA policies and procedures were insufficient and failed to take into account key risk pillars, including the customer’s source of wealth as well as the money laundering and financial terrorism risks associated with their country of residence.

CRA is a crucial component of anti-money laundering regulations as it is through the process that high-risk individuals are identified. Failing to carry out adequate CRA procedures makes a business and the jurisdiction where it operates more susceptible to money laundering and other financial crimes. With its deficient CRA policies, Glitnor effectively breached Malta’s AML rules, prompting the FIAU to issue a six-figure fine.

Remediation Required

While Glitnor’s violations are considered serious by the FIAU, the agency praised the company’s willingness to cooperate during the compliance review and its commitment to fixing its mistakes.

The company is now required to modify its CRA processes and procedures and remediate its failures, in line with FIAU’s recommendations and Malta’s existing laws.

Glitnor is the latest gambling operator in Malta to be penalized by the FIAU over AML violations. In March, casino operator Eden Leisure Gaming, which runs Casino Malta, was also fined €233,000 by the agency for failing to comply with anti-money laundering and due diligence rules.

Ella McDonald Author

Worldwide gambling related news stories are what you will find being written by Ella, she has a keen interest however in UK and European based new stories relating to all gaming environments, and she is always prepared to ask the difficult questions many other journalists avoiding asking those in power.

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