Flawed risk assessment protocols

Danish regulator imposes injunctions on Mr Green for anti-money laundering violations

Reading time 1:27 min

The Danish gambling regulator, Spillemyndigheden, has issued three injunctions against the popular operator Mr Green, alleging breaches of Denmark's stringent Money Laundering Act.

Spillemyndigheden's investigations into Mr Green's operations in Denmark revealed deficiencies in three critical areas: inadequate risk assessments, flawed business processes, and a lack of documentation for essential checks.

One of the primary concerns identified by Spillemyndigheden pertains to Mr Green's "flawed" risk assessment protocols, particularly in reference to Section 7 of the Money Laundering Act. 

This section mandates an evaluation of risks associated with individual payment solutions and delivery channels, a crucial step in combating money laundering and terrorism financing. Mr Green's failure to conduct such assessments was deemed a significant regulatory breach.

Another injunction focused on the absence of business procedures for internal controls. Spillemyndigheden noted that Mr Green's existing systems lacked clarity regarding the frequency of controls and lacked written business procedures outlining the conduct of checks, contravening the stipulations of Section 8 of the Act.

Furthermore, Spillemyndigheden raised concerns about Mr Green's lax approach to documentation, particularly regarding checks or internal controls, as required by Section 8 of the Money Laundering Act.

In addition to the injunctions, Mr Green faces further reprimand for failing to comply with Section 26 of the Act, which mandates immediate notification to the Money Laundering Secretariat in cases of suspected money laundering or terrorism financing. Spillemyndigheden criticized Mr Green for its lack of prompt reporting and failure to meet its regulatory obligations in this regard.

Responding to the regulatory scrutiny, a spokesperson from 888 Holdings, the parent company of Mr Green, expressed a commitment to rectifying the identified deficiencies. 

"Following a routine audit of Mr Green by the Danish regulatory authority, Spillemyndigheden, we have three audit findings to address. We are working closely with the regulator and plan to make some minor amendments to our anti-money laundering processes and accompanying documentation," the spokesperson stated.

Looking ahead, Spillemyndigheden outlined a "duty to act" for Mr Green, stipulating deadlines for corrective measures. By June 10, Mr Green is required to submit revised risk assessments and business processes for internal controls. 

Additionally, the company must provide prepared business processes for conducting controls and documentation to demonstrate compliance by October 10.

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