LeoVegas slapped with Danish reprimand over AML error
Malta-headquartered operator warned over customer verification systems glitch between June 2019 and May 2020
The Danish Gambling Authority (DGA) has reprimanded LeoVegas after the operator reported failings in its anti-money laundering (AML) and customer verification processes.
The Malta-headquartered firm notified the DGA of an error in its internal customer verification process, which affected player accounts between June 2019 and May 2020.
An internal investigation carried out by LeoVegas revealed that temporary customer accounts were being converted to full accounts without mandatory customer verification procedures taking place.
The error resulted in customers being verified by the Danish national NemID system, rather than by additional checks from the operator.
Under Danish AML law, NemID can be used as the sole source of customer verification, but only in instances where financial risk is minimal.
“In all other cases, control of NemID cannot stand alone and must thus be supplemented by another control source or other mitigating measures,” the DGA said.
LeoVegas said the error was corrected in June 2020, with subsequent system improvements being made to ensure the issue did not reoccur.
Despite the correction, the DGA determined a reprimand was necessary due to the nature of the breach.
Elsewhere, the DGA has published a formal warning for Danish operator Spillehallen.dk for failing to operate sufficient AML business procedures and practices.
In September 2019, the DGA asked Spillehallen.dk to provide details of all written procedures relating to AML and customer verification. These documents were later provided in October.
In November, Spillehallen.dk confirmed that a “major revision” of the company’s risk assessment, policies, procedures, controls and internal teaching material had been initiated.
However, the DGA determined past procedures did not comply with the Danish Money Laundering Act for the period.