Online casino operator LeoVegas has been reprimanded by Spillemyndigheden, the Danish Gambling Authority, for failure to adhere to Anti Money Laundering and customer due diligence requirements.
However, the Authority noted that the allegations against LeoVegas have not prompted any serious action, as the company informed the regulator that it had introduced ‘new business procedures’ on 1 January 2020 meaning due diligence measures and AML investigations will be conducted ‘at a far earlier stage’.
The Authority was also notified by the operator that reporting procedures were also amended on 1 January, and as a result, the Secretariat will be notified immediately in the event the firm becomes suspicious of potential money laundering activity.
LeoVegas was accused by the operator of allowing five customers to deposit between DKK 1.2 and 1.6 million between six and 46 months from 2017 to 2019, without validating whether or not the funds for these transactions came from criminal sources.
The authority discovered the transactions whilst conducting an assessment of a sample of 20 LeoVegas players in Denmark, ruling that the firm failed to adhere to the Authority’s reporting obligation, requiring the company to inform the Anti-Money Laundering Secretariat in the event of AML transgressions.
In four out of the five instances, the regulator deemed that LeoVegas had acted too late, as the Secretariat was not informed until between 10 and 22 months after the operator had suspected money laundering and were ‘unable to disprove the suspicion’.
Additionally, LeoVegas has also been accused of making its first report to Spillemyndigheden only after the regulator detected the four transactions during its review of its sample.
“The Danish Gambling Authority notes that the rules on customer due diligence measures and the investigation and reporting obligations are fundamental in the Anti-Money Laundering Act and breaches of the rules consequently lead to an order or an action brought against the gambling operator, as a principle,” the Authority explained.
However, the Authority added that the allegations against LeoVegas have not prompted any serious action, as the company informed the regulator that it had introduced ‘new business procedures’ on 1 January 2020 meaning due diligence measures and AML investigations will be conducted ‘at a far earlier stage’.
The Authority was also notified by the operator that reporting procedures were also amended on 1 January, and as a result, the Secretariat will be notified immediately in the event the firm becomes suspicious of potential money laundering activity.
LeoVegas has faced scrutiny regarding AML compliance requirements in the Nordics previously this year, having been fined SEK 2 million (€200,000) by the Swedish gambling inspectorate, Spelinspektionen, due to allegations of ‘shortcomings in the work against money laundering and terrorist financing’.
