Gaming Regulator in Denmark Warns Unibet over KYC, AML Breaches

Gaming Regulator in Denmark Warns Unibet over KYC, AML Breaches

The gaming regulator in Denmark issued reprimands for Unibet after discovering several breaches of regulations related to anti-money laundering.

Regulator Warns Unibet, Requests Risk Assessment Changes

Spillemyndigheden, the Danish Gambling Authority, announced on Friday that it issued warnings against Kindred Group’s brand Unibet. The reprimands come after an investigation led by the Authority uncovered that Unibet breached rules related to business processes and know your customer (KYC) rules.

Moreover, the regulator outlined that Unibet breached rules related to anti-money laundering (AML) and regulations related to the obligation to investigate and report suspected AML activities. In its recent announcement, Spillemyndigheden ordered the operator to introduce changes to its risk assessment rules related to AML. Ultimately, the regulator wants Unibet’s updated risk assessment to cover all relevant risks. According to the Authority, the operator has two months to implement the requested changes.

The recent reprimands come a time when Kindred’s subsidiary, Trannel International Limited, received a warning from the Norwegian Lotteries Authority earlier this week. The regulator in the country warned Trannel it may face daily coercive fines of NOK 1,198 million ($137,000) unless it ceases its illegal gaming offering in the country.

Spillemyndigheden Says Unibet Breached AML Regulations

The Danish Gambling Authority revealed that it found breaches related to Unibet’s obligations under the Anti-Money Laundering Act. One such issue relates to insufficient measures related to KYC rules and risk assessment of customer types. The Authority pointed out that this posed a risk for the operator being used for money laundering through gambling.

Spillemyndigheden explained that before January 25, 2022, “Unibet did not have sufficient written business procedures for ongoing monitoring of existing customer relations.” The operator was lacking sufficient operational business procedures related to collecting and assessing documentation regarding suspicion of money laundering. Due to those breaches, the Authority issued a reprimand.

The Operator Didn’t Have Sufficient KYC Measures

Other breaches described by the Authority reveal that for five out of 20 high roller customers, Unibet hasn’t taken sufficient KYC measures. What is more, for three out of the five customers, the operator failed to investigate suspicious transactions. One of those suspicious cases of money laundering had to be reported to the Money Laundering Secretariat but according to the Authority, Unibet failed to do so.

Last but not least, Spillemyndigheden described the case of a young player that managed to deposit more than DKK 1 million ($153,000) over one year. The regulator said that Unibet wasn’t aware if the players’ funds originated from criminal activities. Overall, the player used six different payment slips and at least one did not belong to them. The Authority said that the operator tried to contact the player and investigate the origin of the funds only after being prompted by the Authority. Moreover, by the time an attempt to check the player’s funds was made, their account was no longer active.