Due diligence breaches see Unibet sanctioned by Danish authorities

Unibet has faced enforcement actions by the Spillemyndigheden, the Danish Gambling Authority, for breaches of anti-money laundering and due diligence requirements.

The Kindred Group brand has been accused of failure to comply with due diligence rules and allowing a player to deposit DKK 1.4 million to his account between December 2016 and December 2018 without ‘sufficient knowledge about whether or not the player’s funds originated from crime. 

“This took place despite the fact that Unibet had noted in March 2015 that the player – who at the time was inactive – must be monitored if he became active again,” Spillemyndigheden explained.

Unibet requested that the player submit documentation for the origin of their funds in December 2018, with the information provided confirming the Authority’s suspicion that the player had gambled much more than he could finance via his income and assets’.

However, the DGA maintained that Unibet continued to allow the player to deposit DKK 1.8 million into his account throughout 2019 and until his account was terminated in April 2020.

Spillemyndigheden continued: “The order on notification is given because Unibet in the same case has omitted to notify the Money Laundering Secretariat, although they already in 2015 had a suspicion which was never dismissed. 

“Since Unibet has not yet notified the Money Laundering Secretariat, the breach still exists and consequently, Unibet has received an order to correct the situation by making a report.”

Ensuring operator compliance with AML regulations has been a key objective of Spillemyndigheden in recent months, reminding betting firms of their obligations in an update in September.

The authority reminded operators that any and all suspicious financial transactions must be reported to the country’s Money Laundering Secretariat, the FIU, which serves as the public prosecutor for economic crimes within domestic and international courts.

Under the terms of the Danish 2018 Gambling Act, all licensed operators are required to report suspicious AML transactions and infringements to the FIU with the aim of safeguarding the country’s financial networks.

Unibet is the most recent operator to be penalised for failure to comply with national AML and due diligence requirements, with LeoVegas facing sanctions for similar reasons earlier this year after an investigation found that five individuals out of a sample of 20 had deposited between DKK 1.2 million and 1.6 million between 2017 and 2019 without any financial checks occurring.