Danish regulator reports Tipwin to police for AML failings

Spillemyndigheden says the German gambling operator breached AML rules.

Denmark.- The Danish gambling regulator Spillemyndigheden has reported Tipwin to the police for breaches of Denmark’s money laundering rules. It says the German operator breached the Money Laundering Act by failing to prepare a risk assessment and to have written policies for retail betting.

Spillemyndigheden said Tipwin only prepared a risk assessment of retail betting sales from May 16 of this year and had no written AML procedures or controls for retail betting until May 25. The regulator also issued an injunction for breaches of rules on procedures for online casino and betting.

It said: “Spillemyndigheden notes that the rules on risk assessment, policies and business procedures are absolutely fundamental in the Money Laundering Act. By failing to prepare a risk assessment, Tipwin has lacked a useful tool to provide an overview and understanding of where and to what extent Tipwin is exposed to money laundering or terrorist financing, and what necessary measures are in place to mitigate the risks involved.

“Preparing a risk assessment of the company’s business model is a fundamental means of limiting the risk of money laundering. Tipwin has thus not had the policies and operational procedures that stem from a risk assessment. Due to its failing to prepare a risk assessment, the regulator has handed over the case to the police investigation.”

Last month, Spillemyndigheden warned bet365 for failing to complete due diligence checks on a young customer who deposited around DKK190,000 (€25,537) in their account over a year. The regulator said bet365 had insufficient knowledge of the player’s source of funds to be able to rule out criminal activity.

The regulator noted that the player’s age and the amount deposited warranted due diligence checks to obtain information on their income, but it carried out no investigation and made no notes about the player. The regulator said that constituted a breach of Sections 10.1, 11.1 and 25 of the Danish Money Laundering Act.

Earlier in the month, Spillemyndigheden had warned operators to remember that they must respect laws addressing customers subject to financial sanctions.