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Danish regulator reprimands Reel for money laundering failures

| By Nosa Omoigui
Denmark's gaming regulator Spillemyndigheden has reprimanded operator Reel Denmark Limited over violations of the country's money laundering legislation.

Reel were found to be in breach of the Money Laundering Act after allowing a player to deposit DKK2.4m (£270,000/€320,000) into their account between 2019 and 2020, without having sufficient knowledge regarding the source of the funds.

It wasn’t until the regulator performed a random check on the player in the summer of 2021 that Reel sought out information on the player’s income and employment conditions. The operator deemed the player in question could afford to make such a deposit based on salary, even if they were depositing more than said salary after tax.

Spillemyndigheden’s ruling said: “It is the Gambling Authority’s assessment that Reel has violated the rules on customer due diligence procedures by not obtaining information on the player previously. 

“It is also the Gambling Authority’s assessment that Reel should have investigated the player’s circumstances further, as the income and employment conditions were not sufficient to dispel a suspicion of money laundering – therefore, Reel has violated the rules of duty of investigation.”

Spillemyndigheden declined to hit Reel with any further sanctions, as the operator has subsequently “introduced new business procedures for customer due diligence procedures”.

The regulator has issued similar reprimands to both Mr Green and Cashpoint Limited so far this year.

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