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Casino operator Skill on Net Ltd has received three injunctions and two reprimands from the Danish Gambling Authority (DGA) for breaches of the country’s Money Laundering Act.
The first injunction was given for its failure to carry out a separate risk assessment for the “individual identified risks associated with Skill on Net’s business model”.
The second injunction refers to the company’s written business procedure, which currently fails to detail how, when and who carries out checks on internal controls, which is in violation of instructions in Section 8 of the aforementioned Money Laundering Act (AML Act).
The third and final injunction was issued because “Skill on Net has not documented that checks have been carried out, that the internal checks have been carried out”. This was once again a violation of Section 8 of the country’s AML Act.
The first reprimand was given for a multitude of reasons, including a vague reference to its “business procedure for establishing customer relationships”, the DGA said.
The reprimand also cited customer familiarisation procedures that were carried out at inappropriate times. In addition, the screening for politically exposed persons was not done “on an ongoing basis for customers who had not paid over a fixed defined amount”.
A second reprimand was given because Skill on Net’s whistleblower scheme was not fully anonymous. In fact, the only way to report was via a non-anonymised email, the regulator said.
Currently, the DGA has no authority to issue fines. A new bill that will come into effect on July 1 would give the authority the power to issue orders and reprimands. The sole exception currently is for money laundering-related violations, which these reprimands fall under, but the regulator would need to refer the case to the police if it sought a financial penalty.
Other violations, as of July 1, will for the first time become public information.
Skill on Net has two months to hand in new documentation, including a risk assessment and process for checking internal controls, to show that it is now in compliance.
It has six months to submit documentation proving that new internal controls have gone into effect. Skill on Net has already revised its whistleblower reporting process, the company said.
