Bet365 receives slap on the wrist in Denmark for Money Laundering Act violation
Online giant let young player deposit DKK190,000 over the course of more than a year without sufficient source of funds checks
Bet365 has been reprimanded by the Danish Gaming Authority (DGA) for violating the rules on customer due diligence procedures as part of the Money Laundering Act.
The regulator revealed that the privately owned operator allowed a “young player” to deposit around DKK190,000 (£21,660) over the course of a little more than a year without the proper checks.
Bet365 didn’t have sufficient knowledge of whether the player’s funds originated from criminal activity, the DGA stated.
The regulator said that the player’s age and the amount of money involved should have given bet365 the opportunity to investigate the origin of the funds in more detail, such as by obtaining income details.
“Since Hillside [bet365] had not conducted investigations on the player, there were also no notes on the player,” the DGA said.
It went on to say: “The Gambling Authority notes that the rules on customer due diligence procedures, duty to investigate and duty to list are absolutely fundamental in the Money Laundering Act, and violation of the rules leads as a clear starting point to injunctions or reprimands or, in serious or repeated cases, to police reporting.”
However, bet365 escaped any financial punishment arising from this violation of the rules regarding customer due diligence, subsection 1 of the Money Laundering Act.
The regulator concluded: “The prosecution does not entail any duty of action for Hillside, as Hillside has subsequently introduced new business procedures for customer knowledge procedures and investigation.”
This is the second reprimand that the DGA has taken this year after Reel Denmark was pulled up for failings around KYC.
In March, the regulator’s director, Anders Dorph, spoke exclusively to EGR about how the DGA prides itself on an open and dialogue-focused relationship with operators.