The Financial Intelligence Analysis Unit (FIAU) of Malta has imposed a substantial fine of €222,736 ($244,085) on Trannel International Limited, a branch of the Kindred Group, due to compliance failures with regulatory standards.
Trannel’s Risk Analysis Failures Unearthed by FIAU Through Compliance Shortcomings
The inquiry conducted by the FIAU uncovered that Trannel overlooked implementing thorough risk analyses for a significant group of clients, with deposits surpassing €2,000 as obliged by law. The investigation exposed the critical deficiencies in Trannel’s Customer Risk Assessment (CRA) strategy, highlighted by an inadequate system to link multiple customer accounts, as reported by TVM News. Each account was evaluated individually, neglecting the wider context of a client’s comprehensive activity.
In an anticipatory response to the regulatory scrutiny, Trannel facilitatively addressed the deficiency by introducing an automated risk evaluation model corresponding to account registration. However, corrective efforts notwithstanding, the FIAU stressed the severity of Trannel’s lapses in its compliance measures.
The oversight authority underscored instances where Trannel’s risk assessment preferred transaction risk against other essential aspects such as customer’s profile and geographical considerations. Inaccurately ranked profiles represented 40% of the evaluated player profiles, overlooking factors including deposit size, the velocity of transactions and the choosen payment methods.
Trannel’s Insufficient Examination of High-Value Player Profiles Reveals Financial Warning Signs
Two individual player profiles aroused scrutiny due to Trannel’s lack of adequate examination of financial transactions. In one scenario, a player channelled €3.5 million ($3.8 million) within a year and a half, engaging in non-cyclical transactions with disparities in claimed income.
In a second scenario, deposit totals exceeding €350,000 ($383,548) within just three months were noted, coupled with dubious sources of income, and third-party e-wallet transactions. Trannel failed to collect adequate information to validate these players’ financial activities.
In addition, Trannel did not live up to meeting record-keeping requirements, with 70% of player profiles missing necessary documentation gathered through open-source intelligence found online.
Malta is not the sole jurisdiction where Trannel faces hurdles. In June, Norwegian gaming authorities received legal affirmation when the Borgarting Court of Appeal dismissed Trannel International Limited’s appeal against a mandatory penalization of NOK 1.2 million ($108,600) per day.
The legal conflict initiated in 2019, as Norway’s gaming overseer, Lotteritilsynet, pressured Trannel to suspend operations in the country. The situation resulted in denied appeals, a temporary cessation of activities, followed by imposition of fines, culminating with a recent court verdict marking the conclusion of Trannel’s legal disputes in Norway.
The minister of Culture and Equality, Anette Trettebergstuen, remarked that the court’s decision aligns with the Norwegian exclusive rights model, while Atle Hamar, the director of Lotteritilsynet, envisages Trannel’s comprehensive retreat from the Norwegian market.
