LeoVegas hit with Danish Gambling Authority censure over AML violations
Malta-headquartered operator found to have conducted “inadequate” customer due diligence
LeoVegas has been issued with a reprimand by the Danish Gambling Authority (DGA) for violating rules on customer diligence and anti-money laundering (AML) procedures. The DGA confirmed the censure was due to infractions relating to customer due diligence as provided for under the Danish Money Laundering Act (MLA) and a separate reprimand for breaching notification requirements. DGA investigators identified the violations in a random review of 20 so-called “major” players on the LeoVegas site between 2017 and 2019. During this review, the DGA found “inadequate” customer due diligence procedures on five accounts and a lack of further investigations by the firm, as required under the MLA. The Danish regulator revealed these players deposited between DKK1.2m and DKK1.67m over periods ranging between six and 46 months without having their source of funds clarified by the operator, which is required by law. In respect of notification obligations, the DGA found that in four of the five cases, the Danish Money Laundering Secretariat had been notified of the potential for AML violations far later than required. Under the MLA, suspicions of money laundering violations must be reported as soon as they are identified. However, in all four cases, LeoVegas reported this between 10 and 22 months after the initial suspicions were confirmed. “In all four cases, LeoVegas only made the notification after the Danish Gaming Authority had drawn the four gaming accounts for random review,” the DGA said. “The gaming authority notes that the rules on customer due diligence procedures and the duty of investigation and notification are absolutely fundamental in the Money Laundering Act, and violation of the rules leads as the clear starting point to injunctions or reprimands,” it added. While the reprimand carried no requirement to act, LeoVegas confirmed that rules were introduced in January 2020, requiring customer due diligence procedures and subsequent investigations be carried out at a “much earlier” stage. LeoVegas has also introduced changes to its notification procedure with effect from January 2020 to ensure that in all similar cases, notification is given to the Money Laundering Secretariat immediately.