Danish regulator reports Tipwin to police for AML Act breaches

Danish police

Danish police

Tipwin has been reported to police by the Danish Gambling Authority for “breaching the rules on risk assessment, policies, business procedures, and supervision” of sections of the Anti-Money Laundering Act.

This is with regards to the provision of land-based gambling products, with the group also given orders regarding retail and online services. The DGA has given the group a three month time frame to correct these matters.

Action regarding the former has been taken because Tipwin, up until May 16, 2022, had not prepared a risk assessment of their sale of land-based betting products and did not have written procedures on their provision of their product, said the DGA.

Furthermore, it was also determined that the firm had insufficient procedures for and supervision of their provision of land-based gambling products in relation to anti-money laundering up until May 25, 2022. 

“The Danish Gambling Authority notes that the rules on risk assessment, policies and business procedures are fundamental parts of the Anti-Money Laundering Act,” the regulator noted.

“By neglecting to prepare a risk assessment, Tipwin has not had a useful tool to provide an overview and understanding of where and to which extent Tipwin is in risk of being abused for purposes of money laundering or financing of terrorism and which measures ae necessary to mitigate the risks hereof. 

“Preparation of a risk assessment of the business’ business model is a fundamental means to mitigate the risk of money laundering of criminal proceeds.”

Adding: “Tipwin has exposed itself to a significant risk of being abused for purposes of money laundering. Therefore, the Danish Gambling Authority has turned the case over to the police for investigation.”

An order has also been issued for an alleged breach of business procedures where the DGA found Tipin lacking regarding notifications to the Money Laundering Secretariat for their provision of online casino and betting products.

A further order has been handed out for breaches concerning rules on training staff in AML rules, as well as insufficiencies regarding the identification of risks represented by using their self-service terminals.

“The order for breaching the rules on business procedures is given because the Danish Gambling Authority has found that Tipwin does not have sufficient business procedures to mitigate the risk in relation to money laundering by use of self-service terminals, prize receipts and credit vouchers,” the regulator continued. 

“In addition, the Danish Gambling Authority has found that Tipwin does not have sufficient business procedures describing how Tipwin must assess whether customers have made linked transactions of more than 2,000 euros within 24 hours.”

Author: Ava Harvey