Operator News

Malta – Casino Malta fined for AML failings

By Phil - 13 March 2023

Casino Malta, the land-based Maltese casino owned by Baltic-based Olympic Entertainment Group, has been fined €233,834 for anti-money laundering and counter-terrorist breaches.

Malta’s Financial Intelligence Action Unit (FIAU) ruled that the operator had demonstrated insufficient due diligence and inadequate risk assessment procedures.

Among the breaches, it said that a CEO with connections to Turkey spent €1m at Casino Malta without his sources of funds being checked. The funds originated from eight different bank accounts.

The FIAU said: “The casino should have carried out additional measures such as obtaining documentation as to this player’s source of wealth (SOW) as well as the income earned, and other returns generated through his employment/businesses”.

Another breach highlighted a student with connections to China who was able to spend €200,000 and lose €80,000 between January and December 2019 without sources of funds being checked.

The FIAU said: “We were not provided with any reassurance as to how a student could afford such substantial gaming activity/deposit in a relatively short period of time”.

There were also problems with the casino’s internal risk classifications with 22 per cent of players reviewed given a low or medium risk rating making transactions of higher amounts than wshould be allowed. One customer spent €2m and lost €900,000 between 2016 and 2019. 

“This customer activity should have triggered the company not only to carry out an update of the risk rating, but independently of the rating to carry out the necessary enhanced measures to manage the risks of such activity,” the report explained. “It does not identify nor evidence the source of funds but simply outlines the flow of funds.”

Another breach involved a former politician who was categorised as low-risk despite being found to have been involved in bribery and tax evasion.

A player whose job was listed as ‘plasterer’ was able to gamble large sums despite a freezing order in place due to court proceedings for drug trafficking.

It said: “The company, although unaware of the freezing order, knew of the ongoing court proceedings against the customer. Notwithstanding this, the company never submitted a suspicious transaction report (STR) to the FIAU in relation to this and continued to allow the player to wager substantial amounts.”