The Danish Gambling Authority has issued Betfair International with three orders and a reprimand for violating the Anti-Money Laundering (AML) Act. These actions are in response to various breaches of the AML Act, reflecting shortcomings in risk assessment, business procedures, controls, and employee screening.
Breaches of AML Act:
Betfair International’s breaches of the AML Act have resulted in specific actions by the Danish Gambling Authority:
Order for Risk Assessment: Betfair failed to conduct separate risk assessments related to its business model, leading to a violation of section 7(1) of the AML Act.
Order for Business Procedures: The written business procedures for customer due diligence measures lacked adequate coverage of the timing requirements stipulated by the AML Act, leading to a breach of section 8(1) of the Act on business procedures.
Order for Controls: Betfair’s procedures for screening employees did not sufficiently address mechanisms for the company to be informed if an employee is convicted of a criminal offense. This oversight increased the risk of employee involvement in money laundering or terrorist financing activities, contravening section 8(1) of the AML Act on controls.
Reprimand for Business Procedures: Betfair received a reprimand for its breach of business procedures, although specific details of this breach were not provided.
Critical Aspects of AML Compliance:
Risk Assessment: Betfair’s failure to separately assess risks associated with its business model highlights the importance of comprehensive risk assessment in identifying potential vulnerabilities to money laundering activities.
Customer Due Diligence: Adequate coverage of customer due diligence measures and adherence to timing requirements are fundamental to AML compliance and preventing illicit financial activities.
Employee Screening: Ensuring thorough procedures for screening employees, especially regarding criminal convictions, is essential to mitigate risks within an organization.
Internal Controls: Effective internal controls, well-documented and conducted at regular intervals, are pivotal in maintaining compliance with the AML Act.
Compliance Deadline:
Betfair International has been granted a three-month deadline to rectify the first two orders related to risk assessment and business procedures. Additionally, the company has 12 months to provide documented evidence of controls in various areas, including risk management, customer due diligence, employee screening, and internal controls.
The Danish Gambling Authority’s actions against Betfair International underscore the importance of stringent Anti-Money Laundering measures within the gambling industry. Addressing these breaches and implementing robust AML compliance measures are essential steps for Betfair to uphold its regulatory obligations and prevent illicit financial activities.