Betfair International Plc, a subsidiary of Flutter Entertainment, has been hit with three enforcement orders and a reprimand by the Danish Gambling Authority, Spillemyndigheden, for breaching Denmark’s Anti-Money Laundering (AML) Act.
Betfair Faces Regulatory Action for AML Act Violations in Three Key Areas
The regulatory authority found that Betfair had failed to meet the requirements set out in the AML Act in three key areas. The first order was issued because Betfair’s risk assessment did not adequately consider the inherent risk factors associated with its business model.
The second order was issued due to insufficient written procedures for customer due diligence. The procedures did not ensure that customer due diligence measures were conducted at appropriate times in accordance with the requirements outlined in the AML Act.
Furthermore, the written procedures did not address how Betfair would become aware if an employee was convicted of a criminal offense during their employment, thereby increasing the risk of money laundering and terrorist financing.
The third order was given because Betfair failed to provide documented evidence of regular and appropriate controls in various areas such as risk management, customer due diligence, employee screening, investigation and reporting obligations, information storage, and internal controls.
The company must now submit an updated risk assessment that addresses the identified shortcomings, improve its written procedures, and provide documentation of future control procedures.
Betfair has been given a three-month deadline to rectify the issues highlighted in the first two orders, while a twelve-month deadline has been set for the submission of documentation demonstrating compliance with the third one.
Spillemyndigheden Issues Reprimand to Betfair over Customer Identity Control Deficiencies
Additionally, Betfair received a reprimand from Spillemyndigheden for its inadequate control of customer identity information up until May 16, 2023. However, this specific violation is no longer active and does not require further action.
The Danish Financial Supervisory Authority (DFSA) introduced updated rules for the AML Act earlier this year, imposing stricter requirements for customer due diligence and monitoring individual transactions and money transfers.
Betfair now faces the challenge of addressing the deficiencies highlighted by the Danish Gambling Authority within the specified timeframes, in order to ensure compliance with the AML Act and maintain its operations in Denmark.
Betfair has also faced difficulties in Sweden and the UK. In April, the company was fined for providing betting markets on 148 matches between 2021 and 2022 in the U21 Allsvenskan, a youth soccer league where operators are prohibited from offering gambling opportunities. In May, Betfair faced a fine of £490,000 ($606,300) from the UK regulator for the dissemination of promotional material to individuals who had self-excluded themselves.