On 20 January 2022, the Danish Gambling Authority warned Mr. Green for breaching the rules on KYC in sections 10(1) and 11(1)(5) of the Anti-Money Laundering Act and the rules on the obligation to investigate in section 25 of the Anti-Money Laundering Act.
The warning is given because Mr. Green has let a young player deposit approx. DKK 325,000 to his account during a year without Mr. Green having sufficient knowledge about whether or not the player’s funds originated from criminal proceeds. This means that Mr. Green has failed to comply with the obligations on KYC measures and the obligation to investigate.
Via internet searches, Mr. Green learned the player’s profession and his approximate level of income. In Mr. Green’s opinion, the player was able to finance his gambling within this level of income despite having deposited more than his disposable income. Thus, Mr. Green did not conduct any further investigations to clarify the origin of the funds, for example, by investigating the player’s income any further.
The Danish Gambling Authority finds that Mr. Green has made an incorrect assessment of the player’s profession and consequently the player’s income. This means that Mr. Green has not had sufficient knowledge of the player. Mr. Green should have investigated the player’s assets and income further because the investigations that were made were not sufficient to disprove a suspicion of money laundering.
The Danish Gambling Authority notes that the rules on KYC and the obligation to investigate are fundamental parts of the Anti-Money Laundering Act and breaches of the rules lead to an order or a warning or in cases of serious or repeated breaches, they lead to a report to the police.
The order does not entail an obligation to act for Mr. Green because Mr. Green subsequently has introduced new business procedures for KYC measures and the obligation to investigate.