Tipwin reported to Danish police over money laundering failings

Spillemyndigheden made the police report due to the business having not prepared a risk assessment of its sale of retail bets until 16 May 2022, in addition to a lack of written policies on its retail offering.

It also noted that the operator did not have any written business procedures and controls for its land-based offering in relation to money laundering until 25 May 2022.

The regulator stated: “Spillemyndigheden notes that the rules on risk assessment, policies and business procedures are absolutely fundamental in the Money Laundering Act. By failing to prepare a risk assessment, Tipwin has not had a useful tool that has provided an overview and understanding of where and to what extent Tipwin is exposed to money laundering or terrorist financing, and what measures are in place that are necessary to mitigate the risks involved.

“Preparing a risk assessment of the company’s business model is a very fundamental means of limiting the risk of money laundering. Tipwin has thus also not had policies and operational procedures that stem from the risk assessment. By failing to prepare a risk assessment, the Gambling Authority has therefore handed over the case to the police investigation.”

Spillemyndigheden also issued an injunction for the breach of rules about procedures relating to online casino and betting operations.

The regulator has made money laundering a point of emphasis of late. Last month it released a statement reminding businesses in the sector that they are “obliged” to comply with regulations that prohibit financial interactions with “countries, individuals, groups, legal bodies or entities”.

In addition, in February, Spillemyndigheden reprimanded Reel Denmark, similarly over money laundering failures.  

The regulator gave Tipwin a three month deadline to rectify the situation.