LeoVegas rapped for due diligence breaches in Denmark

The Danish gambling regulator has given LeoVegas a reprimand for failing to check sources of funds.

Denmark.- The national gambling regulator Spillemyndigheden has had strong words with Swedish online gaming operator LeoVegas for breaches of due diligence procedures.

The regulator carried out a random review of the activity of 20 big players between 2017 and 2019 and found five cases that breached Denmark’s Money Laundering Act.

The players in question had deposited between DKK1.2m (€161,000) and DKK1.67m without LeoVegas checking the sources of their funds.

Spillemyndigheden said that in four cases, LeoVegas had taken too long to notify the Money Laundering Secretariat and only did so between 10 and 22 months later and after Spillemyndigheden had called the accounts in for review.

LeoVegas escaped sanctions for the incidents because it made changes to its procedures in 2020 in order to more quickly identify such breaches.

Spillemyndigheden said: “The rules on customer due diligence procedures and the duty of investigation and notification are absolutely fundamental to the Money Laundering Act. Violation of the rules is the clear starting point for injunctions or reprimands.” 

Last week, Spillemyndigheden reported that Denmark’s regulated market generated revenue of DKK565m (€76m) in September. Land-based casinos saw their highest revenue since March 2018.

See also: LeoVegas gains approval for Nasdaq Stockholm bond placements