The Netherlands Gambling Authority (KSA) has issued a warning to Tulipa Ent Limited over violations of the country’s Money Laundering and Terrorism Financing (Prevention) Act (WWFT). 

The KSA opened its investigation into Tulipa, which is the licence on which the ComeOn! and GetLucky brands run in the Netherlands, in January 2024.  

The investigation pertained to Tulipa’s anti-money laundering (AML) practices, with the company supplying the regulator with evidence of the protocols and training processes it had in place between February and March of that year. 

According to the KSA, Tulipa’s customer due diligence and risk assessment processes were found to be “inadequate”.  

The regulator cited that Tulipa’s control measures outlined in its AML risk assessment documents didn’t match up with what was outlined in its policy and procedures documents.  

This meant geographic risks, such as players having links to high-risk countries, were not sufficiently mitigated.

The KSA decision stated: “The policy and AML procedure do not clarify which factors exactly lead to a particular risk classification.  

“Furthermore, the AML procedure indicates that Tulipa’s AML team assesses a client’s geographical risk after an alert is generated as a result of a transaction by the client, not at the start of the business relationship.

“The policy also differs from the AML procedure regarding the investigation into the source of the funds. The policy is unclear about how the investigation into the source of the funds should be conducted at Tulipa.”

Furthermore, the KSA noted that Tulipa failed to properly document reports into unusual transactions conducted by the regulator’s Financial Intelligence Unit (FIU).

This meant the unit was unable properly assess Tulipa’s compliance with its reporting AML obligation.

The KSA’s investigation also found Tulipa didn’t provide adequate AML training to its employees, “particularly those working in compliance and the money laundering reporting office”.

Consequently, the regulator ordered Tulipa to amend its practices to comply with the necessary WWFT guidelines within the next six months.

Failure to do so could result in the KSA issuing an administrative fine.

A KSA statement read: “The KSA’s board of directors issues a directive  to comply with the stated guidelines within two and six months and thus end the violations.

“After the benefit period has expired, the KSA will check whether the above instructions have been followed and whether the guidelines have been adhered to.

“If the KSA finds that Tulipa has not complied with the instruction or has not complied with it in a timely or complete manner, the board of directors may impose an order subject to a penalty or an administrative fine.

“The KSA has the crucial task of monitoring gambling providers’ compliance with the WWFT, to prevent money laundering and underlying crime, and to protect the financial system. For this reason, the KSA conducts ongoing investigations into this matter at various providers.

“Gambling providers must monitor their customers’ behaviour and take action if there is unusual behaviour. Examples include a player suddenly depositing large amounts or if there is a suspicion of match-fixing.”

EGR has approached ComeOn Group for comment.

Last month, the KSA hit BetCity parent company Betent BV with a €2.6m fine over duty of care failings concerning young adults.

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