Danish gambling regulator raps Spillehallen over AML discrepancies

Spillemyndigheden found discrepancies in the operator’s written accounts of AML compliance.

Denmark.- The Danish gambling regulator Spillemyndigheden has raised concerns with online casino provider Spillehallen over potential anti-money laundering failings. It said it found discrepancies in its written accounts on compliance with the Danish Anti-Money Laundering Act. 

The regulator found the company’s risk assessment for the period to 10 December 2023 to be inadequately detailed regarding processes for countering money laundering and financing of terrorism. It specifically noted insufficient identification of threat factors associated with customers. 

As such, Spillehallen was found to have breached Section 7 of Denmark’s Anti-Money Laundering Act, which requires companies to provide an assessment of inherent risks, including customer due diligence. Spillemyndigheden said the breach could have increased the risk of the provider being misused for money laundering. 

The regulator said: “The purpose of the risk assessment is to give the gambling operator with a useful tool that provides an overview and understanding of where and to what extent the gambling operator is exposed to being misused for money laundering or financing of terrorism, and what measures are necessary to limit the risks.”

New regulatory powers 

Earlier this month, Spillemyndigheden gained new powers to deal with licensed operators who breach regulations. Amendments to the Gambling Act in force since Monday (July 1) give the regulator more options for sanctions, including the power to issue specific requests that operators must implement.

The regulator will be able to file police reports or even revoke licences for any failure to comply with its orders or their deadlines. It has also been granted expanded data processing authority to allow it to make a more comprehensive analysis of gambling data. The new powers come ahead of the implementation of a dual licensing system for gaming operators and suppliers from September. The change in regulation separates the requirements of the current certification programmes to clarify what criteria operators and game suppliers must each meet.