Danish Gaming Authority Issue a Reprimand to Reel Denmark Limited for Violation of the Money Laundering Act
ODENSE, Denmark (February 11, 2022) –On 10 February 2022, the Danish Gaming Authority issued a reprimand to Reel for violating the rules on customer due diligence procedures in section 10, no. 1, and section 11, subsection 1 of the Money Laundering Act. 1, no. 5, the rules on the duty to investigate in the Money Laundering Act, section 25, subsection 1, and the rules on the duty to notify in the Money Laundering Act, section 26, subsection. 1.
The reprimand is given because Reel has let a player deposit approx. 2.4 million DKK to his gaming account in 2019 and 2020, without having sufficient knowledge of whether the player’s funds originated from criminal matters.
Only in the late summer of 2021 – after the Danish Gaming Authority had selected the player in a random check regarding responsible gambling and money laundering – did Reel ask for information on the player’s income and employment conditions. In this connection, Reel came to the conclusion that the player’s salary could finance the game – even if the player had paid far more into his game account than what the player would be paid in salary after tax. It is the Gambling Authority’s assessment that Reel has violated the rules on customer due diligence procedures by not obtaining information on the player previously. It is also the Gambling Authority’s assessment, that Reel should have investigated the player’s circumstances further, as the income and employment conditions were not sufficient to dispel suspicion of money laundering. Therefore, Reel has violated the rules of duty of investigation.
The reprimand is further given because it is the Gambling Authority’s view that Reel should therefore have had a suspicion or reason to suspect that the player’s transactions could be related to money laundering. Against this background, Reel should have notified the Money Laundering Secretariat immediately. Reel first notified the Money Laundering Secretariat on 18 January 2022 – after the Danish Gaming Authority had consulted Reel on the matter and approx. two years after there was a suspicion that could not reasonably be refuted.
The prosecution does not entail any duty of action for Reel, as Reel has subsequently introduced new business procedures for customer due diligence procedures and a duty to investigate to ensure that similar cases will not occur in the future.
SOURCE: Spillemyndigheden (The Danish Gaming Authority).Tags: Spillemyndigheden, Danish Gaming Authority, issued a reprimand for violating the rules