The Danish Gambling Authority, Spillemyndigheden, has slapped Betfair International Plc, a subsidiary of Flutter Entertainment, with three enforcement directives and a reprimand for violating Denmark’s Anti-Money Laundering (AML) Act.
Betfair Under Scrutiny for Non-Compliance with AML Act in Three Major Areas
Following regulatory investigations, it has been revealed that Betfair fell short of complying with Denmark’s AML Act in three crucial areas. The initial order was imposed due to inadequate assessment of inherent risk factors tied to Betfair’s business model in its own risk evaluation.
Because of the lack of sufficient written procedures for customer due diligence, a second order was issued. The implemented procedures failed to guarantee that customer identification measures were undertaken at the right times per the stipulations set out in the AML Act.
In addition, the written procedures lacked information detailing how Betfair would be notified if an employee was found guilty of a crime during their tenure, which increases the potential for money laundering and financing of terrorism.
Failure on part of Betfair to furnish documented proof of regular and suitable controls in multiple areas including risk management, client due diligence, staff vetting, investigative and reporting obligations, data storage, and internal procedures resulted in the third order.
As a consequence, Betfair now needs to submit a revised risk assessment addressing the identified issues, enhance its written procedures, and provide proof of future control methods.
An ultimatum of three months has been handed to Betfair to rectify discrepancies recognized in the first two orders, with a one-year deadline to submit documentation demonstrating adherence to the third directive.
Spillemyndigheden Reprimands Betfair Due to Insufficient Customer Identity Control
Adding to its woes, Betfair was also issued a reprimand from Spillemyndigheden for inadequate control over client identity data up until May 16, 2023. Fortunately for Betfair, this specific violation is no longer active and does not necessitate additional action.
The Danish Financial Supervisory Authority (DFSA) had revised rules and enforced stricter requirements for customer due diligence, monitoring individual transactions, and money transfers under the AML Act earlier this year.
Now, Betfair is facing the task of mending the shortcomings brought to light by the Danish Gambling Authority within the provided timeline in order to maintain compliance with the AML Act and sustain its Danish operations.
This is not the first regulatory issue for Betfair, who has previously faced scandals in Sweden and the UK. Back in April, the firm was fined for offering betting markets on 148 matches between 2021 and 2022 in the U21 Allsvenskan, a youth soccer league where gambling services are forbidden. Then in May, Betfair was handed a fine of £490,000 ($606,300) by the UK regulator for disseminating promotional material to self-excluded individuals.
