A comprehensive punishment strategy has been unveiled by the Netherlands Gambling Authority (KSA) to enforce greater compliance among gambling providers and operators. The new framework contains penalties that range from warnings to heavy fines of up to €4 million, and it goes into effect immediately on January 2.
The maximum punishments for each of the five categories into which this policy divides infractions are specified. The base fine for Category 1, the lowest rung, is €500. Category 2 penalties are €10,000, Category 3 penalties are €200,000, and Category 4 penalties are €1 million. In Category 5, the harshest penalties, which include violations of the Anti-Money Laundering and Anti-Terrorist Financing Act (Wwft), begin at €2 million.
Nine-Step Approach to Fines
The KSA has implemented a structured nine-step process to determine penalties. Initially, a basic fine is applied, which can double for repeat offences. Adjustments are made at subsequent steps based on the seriousness of the case and the operator’s culpability.
For instance, penalties may rise or fall by 50% depending on the operator’s role in the violation or the gravity of the offence. The offender’s gross turnover also influences the fine, with percentages scaling from 10% for turnover under €1 million to 100% for businesses exceeding €10 million.
KSA will assess whether repeated fines are appropriate for the offenses committed while taking extraordinary circumstances into account. The regulator may permit a payment schedule in situations of financial hardship, but this will not lower the penalty amount.
Critical issues such as anti-money laundering compliance are addressed by category 5 infractions. In keeping with its pledge to protect the Dutch gaming industry, the KSA has underlined that these penalties are intended to guarantee responsibility and compliance with rules.
The KSA seeks to prevent recurrent offenses and provide a safe and equitable gambling environment by adjusting fines according to the operator’s size and the seriousness of violations.
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