FCA-regulated Jeton Group, a high-risk payment processor, was heavily involved in facilitating transactions for illegal online casinos, including those operated by Starscream Group. Jetonbank, a digital offshore bank regulated by the FCA in Dominica, facilitated these transactions by enabling fiat deposits for players in unlicensed jurisdictions, KARTOTEKA reports.
The report calls on insiders to come forward with important information to be exposed.
Introduction to Jeton Group
FCA-regulated Jeton Group has established a key position in the high-risk payment processing industry, focusing in particular on the online gaming and casino market. Over the years, Jeton.com, part of the Jeton Group, has cemented its position as the primary intermediary for numerous online gambling platforms, including those operating outside the regulatory framework.
Recently, Jetonbank, another member of the Jeton Group operating in Dominica under FGU regulation, has emerged as a prominent financial institution offering digital banking services, expanding the group’s ability to process fiat transactions for players participating in illegal online casinos, particularly those associated with the Starscream Group.
Business Model and Key Propositions
Jeton.com: Jeton.com, operated by La Orange Limited, is a high-risk payment processor focused primarily on the online gambling industry. The company’s e-wallet system allows players to deposit and withdraw funds across a variety of gambling platforms, including those operating illegally. As an agent of the Financial House, an FCA-regulated electronic money institution, Jeton.com operates legally, benefiting from authorisation from the UK FCA. However, its association with unregulated and illegal online casinos poses a significant compliance risk.
Jetonbank: Although Jetonbank differs from Jeton.com in its branding, it is closely related to the Jeton Group, as both organizations list the same operators. Jetonbank is a relatively newcomer to the market and positions itself as a “mission-driven digital bank” offering a variety of modern banking services, including multi-currency accounts with SEPA IBAN, business and private banking solutions, and international payments and transfers.
Despite this promising offering, Jeton Bank’s recent activities have raised compliance concerns. It has been identified as a payment facilitator for illegal online casinos owned by Starscream Group, allowing players to deposit funds via instant bank transfer. Additionally, Jeton Bank processes payments from jurisdictions where Starscream’s online casinos do not have the necessary licenses, exacerbating compliance risks.
Regulatory oversight and compliance issues
Jeton.com’s status as an FCA-regulated Financial House agent provides a level of regulatory protection, particularly in the UK market. However, this affiliation does not alleviate wider concerns about the company’s involvement in illegal gambling markets. An investigation by FinTelegram has revealed that Jeton Group, through Jeton.com and Jetonbank, plays a significant role in facilitating financial transactions for online casinos that operate without the necessary legal framework in some European jurisdictions. This poses a significant compliance issue, particularly for Jeton Bank’s compliance department, which must address the legality of processing payments for such activities.
Regulatory oversight of Jetonbank by the FSA in Dominica may not provide the rigorous controls necessary to ensure that its operations comply with international anti-money laundering (AML) and Know Your Customer (KYC) standards. Accepting deposits from players in unlicensed jurisdictions directly undermines the group’s claims of compliance and creates significant reputational and legal risks.
Partnerships and partnerships
Jeton’s partnership with Financial House allows it to operate in the UK under the auspices of the FCA. However, this relationship may be compromised by the company’s continued facilitation of payments for illegal gambling activities. Jeton’s role as a payment processor for Starscream Group, which operates without the regulator’s approval in multiple jurisdictions, further exacerbates compliance issues and calls into question the effectiveness of its internal controls and risk management.
