The Danish gambling authority Spillemyndigheden has issued a warning to gambling operator 888Sport that it has to improve its processes in the area of anti-money laundering (AML)
The regulator issued the warning after they found that the Danish subsidiary of the betting brand had fallen short of the rules laid out in the Danish Money Laundering Act.
According to Spillemyndighden, 888 Denmark was in breach of Section 25 of the Money Laundering Act twice. The Act says that firms have to set up rules detailing their methods of record keeping, and risk assessments as part of their commitment to block money laundering.
One case related to their failure to assess large transactions to ensure that there is no link to money laundering, while the second case involved a failure to alert the State Attorney for Special Economic and International Crime (SØIK) of a potential link to money laundering activities.
The regulator found that one 888 customer spent more than €133,000 with the operator during a three-month period. According to their findings, 888 carried out background checks, including a request for documents. The player did not provide the evidence, but 888 continued to allow him to bet with them for another month before they closed his account.
According to the rules, 888 were obliged to close the account sooner, and to notify the authorities of the potentially suspect transactions. They have now ordered 888 Denmark to improves its procedures to ensure that possible money laundering will be challenged more quickly and that the appropriate authorities will be notified in each case.
The warning is the latest action by the Danish authorities as they attempt to improve the record of the industry on both AML and social responsibility. The online Danish gambling market will also be facing tougher tax rates from 2021, although the tax rate will still be lower than that for land casinos.