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Danish regulator reprimands LeoVegas for violating AML laws

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LeoVegas had no choice but to update its policies after being scolded by Spillemyndigheden for violating AML regulations.

In the gambling industry, it is good to know that a watchful eye keeps track of its patrons having a safe gambling experience, and we expect regulators to take swift action on any operator if needs be.

Swedish operator LeoVegas were recently in violation of AML regulation which led to them being reprimanded and allegedly fined by Denmark's gaming regulator, Spillemyndiqheden.

A serious lack of compliance

According to the Danish regulator, LeoVegas violated the rules on customer due diligence procedures and did not abide by the country’s money laundering act (MLA).

This serious charge of lack of compliance by the Danish Gambling Authority (DGA), came after they randomly reviewed twenty major players at LeoVegas. They found that from 2017 to 2019, five of the twenty players had breached the rules of the MLA.

Shockingly, these players deposited between £140,000 and £190,000 in DKK without LeoVegas knowing or investigating the legality of the source of the money.

“The Danish Gambling Authority notes that the rules on customer due diligence measures and the investigation and reporting obligations are fundamental in the Anti-Money Laundering Act and breaches of the rules consequently lead to an order or an action brought against the gambling operator, as a principle”, the Authority explained.

LeoVegas notified the Money Laundering Secretariat in four of the five cases, but only after the accounts had been called in for review by Spillemyndigheden, roughly between 10 and 22 months after the occurrence.

This was bittersweet for this licenced and Nasdaq quoted gaming operator, as they were only just granted licence renewals by the same regulators earlier in October 2021, extending its betting and casino services in Denmark until 2026.

No serious penalty imposed

These violations occurred between 2017 and 2019 and therefore resulted in no sanctions for the violations being imposed, but this regulator will certainly identify similar breaches far quicker in the future. LeoVegas has since updated its policies to provide better protection and identify and report security breaches, as they may occur.

The commitment to adhere to reporting obligations is a regulation all casinos have to abide by, and they need to inform the AML Secretariat in all such cases of rule-breaking.

Although LeoVegas failed to report the breach of security to the Danish regulator, they were not heavily penalised. Despite the findings, their gambling licence renewal for another five years in Denmark still stands.

LeoVegas - Committed to improve

LeoVegas has been active in the Danish gambling market since 2016 and has recently made major adjustments in its notification system and upgraded its security measures.

They commit to notifying the authorities immediately should there be any suspicion of possible money laundering in the future.

“Our Danish launch was one of our most successful, and the fact that we are now one of the largest operators in the market is testament to that,” says the CEO of LeoVegas, Gustaf Hagman.

Published: November 19, 2021

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Article by Stelly

CasinoWow Contributor

Hey there! I am Stelly, and happily, I'm part of CasinoWow's content team. It excites me to be able to write and share with all gambling enthusiasts unbiased reviews and news that contribute to the gambling community and industry. Thankfully, I also have the chance to help you make an informed choice for casino brands and games, as well as provide interesting guides and news.

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