Glitnor hit with €240k fine in Malta for AML failings

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Glitnor will pay the administrative penalty following the outcome of a 2019 compliance review, which found the business in breach of 10 provisions of Malta’s Prevention of Money Laundering and Funding of Terrorism Regulations (PMLFTR).

“The committee was particularly concerned with the company’s issues when it comes to ascertaining that the gaming activity entertained by it was in line with the customers’ funding abilities,” said the FIAU.

“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.”

Inadequate policies and procedures

The body said that the company’s policies and procedures at the time of the compliance examination were “missing, incomplete or inaccurate”. As a result, the FIAU took aim at Glitnor’s failure to develop a customer business and risk profile.

The regulator also criticised Glitnor’s customer risk assessment policies and lack of due diligence. It highlighted one case in which a 30-year old player from a non-EU jurisdiction deposited €12,100 via pre-paid cards without withdrawing any winnings.

Despite the high volume of deposits made during a short time span, Glitnor did not conduct any enhanced checks on the individuals, request any source of funds documentation or employment details.

Additionally, the FIAU hit out at the operator for inadequate transaction monitoring. While Glitnor had put into a place a system of alerts to monitor player transactions, the financial monitoring body argued that they were insufficient.

“The committee also considered the company’s size, that this is not a large gaming institution, as well as the impact that the subject person’s failures may have had on both its operations and on the local jurisdiction,” added the financial monitoring body.

“However, overall the committee couldn’t but note that, at least up until the compliance review, the failures observed confirm that the company has not given due regard towards its AML/CFT obligations.”

In short statement provided to iGB Glitnor Group said it and its legal advisors disagree with the FIAU’s findings and will be exercising its right to appeal.

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