One of the subsidiaries of the British gambling operator Flutter Entertainment – Betfair International Plc – has faced three enforcement orders and an official reprimand by Spillemyndigheden over alleged violations of Denmark’s Anti-Money Laundering (AML) Act.
As the regulator itself revealed, the Danish Gambling Authority found that the gambling company had failed to comply with the legislative requirements established in the country’s AML Act in three core areas.
Spillemyndigheden unveiled that it issued the first order against Betfair because it found that the online gambling operator’s risk assessment did not adequately take into account the inherent risk factors associated with its business model.
The country’s gambling regulatory body also shared that it issued its second order to the company because it found that Betfair lacked sufficient written customer due diligence procedures. In this sense, the procedures failed to make sure that the operator conducted its customer due diligence at appropriate times as required by Denmark’s Anti-Money Laundering Act. Furthermore, the written procedures failed to address how Betfair would be informed if an employee faced a conviction for a criminal offense at the time they worked for the gambling operator, which increased the risk of money laundering and terrorism financing.
The third order faced by Betfair was issued by the Danish Gambling Authority after the online gambling business failed to provide documented evidence of appropriate and regular controls in a number of areas, including investigation and reporting obligations, customer due diligence, risk management, internal controls, employee screening, and information storage.
Betfair Given 3- and 12-Month Deadlines to Rectify AML Failures
Now, the gambling business is required to submit an updated risk assessment addressing the identified failures to comply with the regulations of the AML Act. Betfair will also have to provide adequate evidence of improvement in its written procedures and hand over some documentation regarding future control procedures.
The Danish Gambling Authority has given a three-month deadline to the company to correct the wrongdoings addressed in the first two orders. As far as the third Spillemyndigheden order is concerned, Betfair has been given a 12-month deadline to submit the necessary documentation proving its compliance with the requirements of the Anti-Money Laundering Act and the country’s gambling regulator.
As mentioned above, apart from the three regulatory orders, the British online company faced an official reprimand from Spillemyndigheden for its inadequate control of customer identity data up until May 16th, 2023. This specific breach, however, no longer exists and does not require the gambling regulator to take further action.
The Danish Financial Supervisory Authority (DFSA) updated the rules and regulations included in the Anti-Money Laundering Act earlier this year, imposing stricter regulations of customer due diligence and monitoring money transfers and individual transactions.
Now, the British gambling operator has to address the deficiencies highlighted by the probe launched by the Danish Gambling Authority in its operations within the specified timeframes to make sure that it is in line with the provisions of Denmark’s AML Act and keep its operations in the country.
This is not the first time Betfair has faced certain regulatory difficulties. In April 2023, the company faced a monetary penalty associated with the provision of betting odds for 148 matches within the U21 Allsvenskan between 2021 and 2022. The league, however, is a youth soccer league, and operators are not legally permitted to offer gambling opportunities for it. In May 2023, the company faced a £490,000 monetary penalty from the UK gambling regulatory body after the UK Gambling Commission found that the operator had targeted self-excluded gamblers with promotional materials.
