Glitnor Services Faces Heavy Fine for Anti-Money Laundering Violations in Malta's Gaming Industry

Glitnor Services Limited, the operator of popular gaming platforms like Lucky Casino, has been hit with a hefty fine by Malta's Financial Supervisory Authority (FIAU) for alleged violations of anti-money laundering (AML) policies. The FIAU conducted a thorough investigation into Glitnor's handling of player funds and uncovered several issues.

One of the key violations identified was Glitnor's failure to obtain the necessary evidence of player identities and residential addresses within the legally mandated timeframe of 30 days. The company also faced criticism for inadequate internal protocols and a lack of solicitation of relevant financial information from customers.

According to the FIAU, Glitnor failed to conduct risk evaluations on deposits exceeding €2,000 (US$2,182). The watchdog highlighted specific instances where Glitnor neglected to respond to suspicious activity. For example, a new user engaged in a series of transactions totaling over €3,000 (US$3,273) within a nine-day period, including consecutive deposits of €800 (US$872.80) on two consecutive days. Despite these patterns raising potential red flags, Glitnor allegedly did not take appropriate action.

The FIAU also pointed out cases where Glitnor did not adequately verify the source of funds provided by clients. This included situations where significant deposits were made and prepaid cards were used. Glitnor was accused of failing to conduct proper inquiries to ascertain the origin of the funds.

In response to the FIAU's findings, Glitnor defended its practices, stating that it conducts comprehensive player reviews utilizing statistical analysis and player-specific insights. However, the FIAU argued that this review process was not in place at the time of the identified violations, leading to its conclusion that Glitnor had violated AML regulations.

Glitnor has contested the fine, asserting that the FIAU's assessment took into account activities that occurred in 2019, a period when the current leadership was in the process of acquiring the platform. As a result, Glitnor believes it should not be held responsible for the actions of the previous management.

Although Glitnor intends to appeal the FIAU's decision, it faces an uphill battle. However, the company can draw some optimism from past legal precedents in Malta. Other companies, including a bank, have successfully challenged the FIAU's actions in court, arguing that the watchdog's procedures denied them the right to a fair trial.

The gaming industry in Malta has faced heightened scrutiny in recent years as regulators aim to ensure compliance with global financial standards. Authorities are committed to maintaining the integrity of the sector and expect gaming operators to actively prevent money laundering activities.

By fLEXI tEAM