Danish Financial Regulatory Authority Orders Betfair to Address Money Laundering Violations
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A subsidiary of Flutter Entertainment, Betfair International, has been sanctioned by the Danish financial regulatory authority, Spillemyndigheden, for several violations of the Anti-Money Laundering Act.
Associated with Flutter Entertainment, Betfair International has been followed up by Denmark’s regulatory authority to address multiple violations of its Anti-Money Laundering Act (AML Act). Risk assessments, business procedures, and controls were identified as deficiencies in three orders issued by the regulator. Betfair has provided a specific timeframe for rectifying the violations to ensure compliance with the regulations.
Based on Spillemyndigheden’s investigation, Betfair failed to assess the inherent risks of its business model adequately. According to the regulator, comprehensive risk assessments are crucial for identifying money laundering and terrorist financing risks.
According to Spillemyndigheden, Betfair’s written business procedures regarding customer due diligence appear to be lacking. This procedure did not meet the AML Act’s section 10(1)(1) deadline. Moreover, the company’s procedures were omitted to ensure that employees were informed of their convictions, which could lead to money laundering or terrorist financing if employees misappropriated company funds. Three months are allowed for Betfair to resolve these deficiencies upon notification.
Betfair said controls were not conducted at the appropriate frequency. This framework has numerous guidelines, including risk management, due diligence, investigations, record-keeping, employee screening, and internal control. To ensure compliance with these controls, Betfair has been given 12 months. Additionally, Betfair was reprimanded for its poorly written business procedures regarding customer identity information. The fact remains, however, that Betfair does not have to act in this regard since it has remedied the breach.
AML breaches were previously reported by Betfair in Sweden that resulted in penalties. Spelinspektionen fined Betfair SEK4.0 million for participating in football competitions contrary to Swedish law. The Swedish government has ruled that Betfair violated its gambling regulations by offering wagers on the U21 Allsvenskan, a youth-level football league. Bets on youth-level football are prohibited by Swedish law. For 2021 and 2022, 224 Swedish customers placed bets totaling SEK1.1 million on 148 matches. Spelinspektionen issued a fine and a formal warning for the violation, whilst Betfair took measures to block betting on U21 Allsvenskan and lower leagues.
The Danish regulator Spillemyndigheden has ordered Betfair International to rectify multiple violations of Denmark’s anti-money laundering laws. As a result of the orders, business procedures, controls, and risk assessments have been improved. Betfair must comply with the deadlines to resolve the breaches and provide updated documentation. In addition, Betfair was sanctioned by the Swedish government for providing bets on unauthorised football events. To maintain a secure and fair betting environment, operators must follow anti-money laundering regulations and comply with national gambling laws.
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