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The Danish Gambling Authority (Spillemyndigheden) has reported Malta-based operator Tipwin to the police for allegedly neglecting its anti-money laundering (AML) obligations.
Tipwin, which has both a betting and online casino licence in Denmark, has been given three months by the regulator to rectify the situation; however, it did not specify what punishment it might dish out at the end of the deadline.
When a licence holder has not followed rules and regulations aimed at ensuring gambling is fair, safe and crime-free, the Danish Gambling Authority can take action by giving a warning, suspending or revoking a licence or imposing a financial penalty.
The operator failed to mitigate the risk of money laundering through its use of self-service terminals, prize receipts and credit vouchers, the regulator said.
Tipwin also failed to provide sufficient explanation as to how it assesses whether customers make interconnected transactions of more than €2,000 within a day.
“By failing to prepare a risk assessment, Tipwin has not had a useful tool to provide an overview and understanding of where and to what extent Tipwin is exposed to money laundering or terrorist financing, or what measures it has in place to mitigate the risks involved,” the authority said.
Tipwin was also found to have not sufficiently ensured that all of its employees receive training regarding the terms of the Money Laundering Act or at least has not documented that their dealers have received the statutory training.
An injunction has been issued against Tipwin’s online business for being deemed to have insufficiently notified the Money Laundering Secretariat of suspected money laundering or terrorist financing, which it is obliged to do under the Money Laundering Act.
Penalties and warnings issued by the Danish Gambling Authority are not always made public, in contrast with other countries that have open licensing, including Sweden, the UK and Lithuania.
Enforcement in Denmark also carries an extra level of secrecy because regulation is overseen by the Ministry of Taxation.