Danish Gambling Regulator Reprimand LeoVegas Over AML Error

LeoVegas denmark AML reprimand
Kevin Larsen
Kevin Larsen, Chief Editor

October turned out to be a month of mixed feelings for LeoVegas as far as its existence in the Denmark online gambling market is concerned. The month began with a renewal of the group online gambling licences, only to end with a regulatory reprimand.

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Reporting and AML Failures

Spillemyndigheden, a Danish gambling regulatory authority, released a statement on its official website, which revealed that it reprimanded Swedish LeoVegas for not adhering to rules relating to customer due diligence procedures.

The Danish gambling regulatory body cited a breach of provisions in the Money Laundering Act for letting players make deposits without proper validation of the source of payments to ensure that the money was not proceeds of crime.

Danish gambling authority also revealed that the operator refused to obey its responsibilities to inform the Anti-Money Laundering Secretariat about any dubious cases of money laundering within the specified period.

The regulatory authority issued the reprimand following a probe into the casino in which the body randomly picked 20 LeoVegas major players and in five of these cases, between the year 2017 and 2019, Spillemyndigheden found the casino in violation of AML laws.

Each of the players in focus made deposits between DKK 1.2 million and DKK1.6 million within the period of six and 46 months. But the operator failed to validate whether they got the money they deposited from illegal sources.

In four of the cases, the operator did not keep to its reporting responsibilities by informing the Anti-Money Laundering Secretariat between 10 months and 22 months. So the regulating body adjudged the operator to have taken actions too late. Further, Leo Vegas turned in the first report only after the gambling authority selected the four deposits in its random sample of players, the regulatory body outlined.

'AML Obligations are Basic '

The Danish gambling regulating authority restated its stance on players’ due diligence procedures and online casinos’ responsibilities to investigate sources of players’ deposits. And to ensure to report as quickly as possible any dubious cases of money laundering to the Money Laundering Act. The regulatory body stated that failure to adhere to this rule would be a starting point for reprimands or injunctions.

The gambling authority decided to just reprimand Leo Vegas this time since the operator on January 1, 2020 laid out new due diligence procedures that would help them to investigate similar cases earlier enough in the future, as well as submit the reports to the Secretariat within the specified time frame.

At the beginning of this month, The Danish gambling regulatory body renewed LeoVegas’ licences earlier this month. This is to enable the online casino to continue to provide virtual casino games and sports wagering to Danish players until 2026 when the licence will expire again.