Swedish gaming firm LeoVegas was recently reprimanded by Danish gaming regulator Spillemyndigheden. The Denmark regulator went after the company for violating client due diligence laws.
Origin of LeoVegas’ Violation
Its reprimands were after conducting a review of twenty major LeoVegas players. The review revealed that five players had committed violations according to the Money Laundering Act. Over two years between 2017 and 2019, the players had deposited large amounts of money between DKK1.2m and DKK1.67m in their accounts.
The company’s action was without any user due diligence since they did not investigate whether the money was from a legit source. In context, the players had deposited $188,000 without proving the money’s sources.
Errors in Reporting Suspicious Accounts
In 4 of the five deposit cases, Spillemyndigheden also noted that LeoVegas turned in the information late. It realized that the gaming firm only reported the accounts when its officers did the review.
In a statement, Spillemyndigheden stated that the rules set on ensuring due diligence are fundamental to the Act. The law expects the companies to adhere to their duty to investigate and notify the regulator. Spillemyndigheden believes it is crucial to end any money laundering activities.
An Effort to Minimizing Loopholes
As such, any violation of set rules calls for reprimands or injunctions. However, the regulator did not sanction LeoVegas for the due diligence violation because of its recent actions. As of January 2021, the gaming firm had designed changes to identify any similar breaches in the future.
The gaming company was granted a license renewal allowing LeoVegas to provide casino and betting services until 2026.
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