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Danish Gaming Regulator Sanctions Unibet Over AML Violations

Richard Marley
December 14, 2021
2 minutes read
1670

Spillemyndigheden, the Danish Gaming Regulatory Authority has sanctioned Unibet for failing to comply with AML and CDD regulations.

The Danish Gambling Authority (DAA) has taken action against Unibet Limited for breaching section 25(1) of the Anti-Money Laundering (AML) Act and sections 10(1), 11(1)(4), and 17(1) of Customer Due Diligence (CDD) rule. Unibet was sanctioned as it allowed a player to deposit DKK 1.4 million to his account between December 2016 and December 2018 without gathering information and verifying the source of income.

“This took place despite the fact that Unibet had noted in March 2015 that the player – who at the time was inactive – must be monitored if he became active again,” Spillemyndigheden explained.

In addition to this, the gaming watchdog has ordered Unibet to notify the Money Laundering Secretariat to correct an existing breach of the obligation to notify of section 26(1) of AML Act. However, Unibet has been given a deadline of two weeks to generate report.

Therefore, Unibet requested the alleged player to submit proper documents for the source of income in December 2018. Thereby, the gathered information proved that regulatory charges are valid.

Despite all the allegations, Unibet allowed the player to deposit DKK 1.8 million into account in 2019 as well until the account was frozen in April 2020.

Spillemyndigheden continued, “The order on the notification is given because Unibet in the same case has omitted to notify the Money Laundering Secretariat, although they already in 2015 had a suspicion which was never dismissed. Since Unibet has not yet notified the Money Laundering Secretariat, the breach still exists and consequently, Unibet has received an order to correct the situation by making a report.”

Ensuring gaming operators comply with AML compliance has been the viable objective of the Danish Gaming Authority in recent months. According to the terms of the Danish 2018 Gambling Act, all licensed betting service providers are required to report suspicious financial transactions to the Money Laundering Secretariat and Financial Investigation Unit (FIU) having the aim of protecting financial networks from criminal activists.

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Danish Gambling Operator Reports Tipwin to the Police for AML Failings
Then danish gambling operator Spillemyndigheden has reported Tipwin to the police for violating the Danish Money Laundering act

According to the sources, Spillemyndigheden, the government office based in Odense, Denmark, has reported to the police that the business has failed to create risk assessments of retail bets with a lack of written policies on its retail offerings.

It is also worth mentioning that the operator also lacks complete business procedures and controls for the offerings based on land or in regards to money laundering until 25 May 2022.

In the official statement of the regulator to the police, it stated all the shortcomings of Tipwin in compliance with the anti-money laundering standards. It stated: “Spillemyndigheden notes that the rules on risk assessment, policies and business procedures are absolutely fundamental in the Money Laundering Act. By failing to prepare a risk assessment, Tipwin has not had a useful tool that has provided an overview and understanding of where and to what extent Tipwin is exposed to money laundering or terrorist financing, and what measures are in place are necessary to mitigate the risks involved.”

This clearly states that the german based gambling operator, Tipwin is exposed to the illicit crimes of money laundering and terrorist financing and has failed to comply with the AML regulations. The Danish regulator also focused on the lack of preparation from the operator on assessments of risks which are fundamental components of the anti-money laundering act.

Spillemyndigheden also added: “Preparing a risk assessment of the company’s business model is a very fundamental means of limiting the risk of money laundering. Tipwin has thus also not had policies and operational procedures that stem from the risk assessment. By failing to prepare a risk assessment, the Gambling Authority has therefore handed over the case to the police investigation.”

The authority also launched an injunction on the breach of rules and procedures in regard to the online casino and betting operations. With the main emphasis on money laundering, the regulator released a statement last month which reminded businesses in the industry of the obligations. It mentioned the regulations most firms are complied with, which are in order to prohibit the financial interactions with individuals, groups, legal bodies or countries.

In addition, Spillemyndigheden issued a 3 months deadline to Tipwin to sort out the situation.

Suggested Read: Danish Gaming Regulator Sanctions Unibet Over AML Violations

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While Australia’s vulnerability to money laundering and organized crime is obvious, firms that incorporate a robust AML Screening solution can steer clear of both money laundering and regulatory penalties. AML/CFT regulations oblige businesses to identify the ultimate beneficial owners and individuals who perform transactions for corporate customers. The FATF advises businesses to verify the identities of their customers through document verification checks and analyse the risk associated with them.

Shufti Pro’s AI-backed identity verification and Anti-Money Laundering (AML) screening solutions allow financial firms to adopt a risk-based approach. The globally acclaimed company offers services in 230+ countries and territories that ultimately overcomes the data transparency issues identified by FATF. In less than a second, financial organizations can get 98.67% accurate identity verification results.

To learn more about Shufti Pro’s AML Screening solution, get in touch with experts.

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Danish Gaming Regulator Sanctions Unibet Over AML Violations

Crown and Star Casinos – A Stain on Australia’s Reputation

Australia’s Anti-Money Laundering Regime

How Casinos and Businesses Can Secure their Operations

What Shufti Pro Offers

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