Denmark Penalizes SkillOnNet for Anti-Money Laundering Lapses

Denmark fines gaming company SkillOnNet for not following rules to prevent money laundering.

SkillOnNet’s AML Inadequacies

SkillOnNet, a major gaming operator, faces backlash from Danish authorities for failing to adhere to Anti-Money Laundering (AML) regulations. The Danish Gambling Authority, Spillemyndigheden, detected shortcomings in the company's risk assessments, business procedures, and internal control documentation. These failings resulted in three injunctions and additional scrutiny for SkillOnNet.

• Risk assessment did not consider all business-related risks.
• Business procedures lacked clear guidelines for internal controls.
• Insufficient documentation proving control checks were conducted.

The first problem was that they didn't do their risk assessment properly because they didn't look at important things like how people pay and what they're selling. They also didn't explain well how they're supposed to check their own work. Plus, they didn't write down the checks they said they did.

Spillemyndigheden found that SkillOnNet failed to offer an anonymous way for people to report issues. They only allowed reports through email, which goes against the legal requirement for a private and independent way to report problems.

The operator is required to provide an updated risk assessment and improve how it checks its processes within the next two months. This needs to show that they are following the Danish Money Laundering Act, which means they have to assess risks properly, run their business reliably, and have a secure system for reporting wrongdoing. If they don't do this, they could be punished like other companies have been in the past, such as the time Tipwin was fined DKK100,000 for breaking these rules.

SkillOnNet was fined by the Gambling Commission in Great Britain and agreed to pay £305,150. This money will go to causes that help prevent harmful gambling. The decision was made after a review found that from January 2021 to December 2022, SkillOnNet didn't do enough to stop money laundering and failed to protect people who gamble too much.

SkillOnNet must take immediate action to fix its violations. The company needs to prove that it can follow the rules by providing the right paperwork and changing its procedures to meet the strict requirements of Spillemyndigheden. With regulators closely monitoring, it's essential for SkillOnNet and similar gaming companies to obey anti-money laundering laws to keep their license to operate in regulated markets.