Cashpoint indicted by Danish Gambling Authority for due diligence failures

Spillemyndigheden reprimands Spillehallen over insufficient AML assessment 

The Danish Gambling Authority, Spillemyndigheden, has reprimanded online casino provider Spillehallen due to potential AML shortcomings. 

According to the report, discrepancies were found in Spillehallen’s written accounts submitted to the regulator which were supposed to provide assurances that the igaming provider is compliant with the Danish Anti-Money Laundering Act. 

The company’s risk assessment, which covered the period up to 10 December 2023, was “inadequate” in providing details about the company’s process of countering money laundering and financing of terrorism, with insufficient identification assessment of the threat factors associated with customers. 

“The purpose of the risk assessment is to provide the gambling operator with a useful tool that gives an overview and understanding of where and to what extent the gambling operator is exposed to being misused for money laundering or financing of terrorism, and what measures are necessary to limit the risks,” Spillemyndigheden said. 

Under Section 7 of the AML Act, companies that are subject to the regulatory framework must provide an assessment of the inherent risks without taking into account the risk mitigation measures. This also includes customer due diligence, which must not be included in the risk assessment. 

Spillehallen was found to be in breach of Section 7, which Spillemyndigheden argued might have increased the risk of the provider being misused for money laundering. 

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