Danish regulator Spillemyndigheden has reprimanded Bet365 after it failed to carry out due diligence checks on a high-spending customer.
This, Spillemyndigheden ruled, amounted to a breach of Denmark’s Money Laundering Act.
The breach related to a case in which a young player was able to deposit approximatively DKK190,000 (£21,660/€25,537/$27,243) into their gambling account over one year, with Bet365 having insufficient knowledge of whether the funds originated from criminal activity.
Spillemyndigheden said the player’s age and the amount that was deposited should have warranted due diligence checks by Bet365, including obtaining information on the player’s income.
However, Bet365 did not carry out any form of investigation on the player, nor did it have any notes about his activity. Therefore the operator did not comply with its obligations regarding customer due diligence procedures, investigation and listing.
As such, the regulator said Bet365 violated the rules on customer due diligence procedures in Section 10, no. 1, and Section 11, subsection 1 of the Money Laundering Act, as well as the rules on the duty to investigate and the duty to list in Section 25 of the Act.
Spillemyndigheden said rules related to customer due diligence procedures, duty to investigate and duty to list are fundamental in the Act. Any violation would result in a warning, injunction or, in more serious or repeated cases, reporting to the police, it warned.
However, Spillemyndigheden said it would not pursue any prosecution of Bet365, noting the operator had subsequently introduced new business procedures for customer due diligence procedures and investigation.
As such, the regulator issued Bet365 a warning over the rule breaches.
