The Danish Gambling Authority has taken action against online gaming software provider and operator SkillOnNet, issuing three injunctions for violations of the Anti-Money Laundering Act (AML). These charges were levied due to breaches in risk assessment, business procedures for internal control and documentation of implemented controls.
The authority has also imposed reprimands on the company for two violations pertaining to breaches in business procedures and non-compliance with regulations regarding the whistleblower scheme in the Act.
The actions stem from the Authority’s inspection of SkillOnNet’s materials, which the company had prepared to adhere to AML.
Order (a) has been issued due to SkillOnNet’s defective risk assessment, as they failed to conduct separate assessments of individual risks associated with their business model, including products and payment solutions, as well as their associated risk factors. Section 7, subsection 1 of AML mandates companies covered by the law to identify and evaluate the risk of being exploited for money laundering or terrorism financing.
Order (b) addressed SkillOnNet’s deficient written business procedures, which fail to outline the specifics of how, when, and by whom checks are conducted to ensure the implementation of internal controls. Section 8, subsection 1 of the AML mandates companies covered by the law to maintain adequate written business procedures, including internal control measures.
The third order (c) accused the company of failing to document the execution of internal checks as required by Section 8, subsection 1 of the AML.
The orders require SkillOnNet to take action within specified timeframes. Within two months, SkillOnNet must submit a revised risk assessment and business process for internal control checks. Additionally, within six months, the company must provide documentation demonstrating that internal control checks have been conducted.
The orders entail that Skill on Net must, within two months, submit a revised risk assessment, business procedures for the control of internal controls, and within six months submit documentation that internal controls have been implemented.
The reprimands do not entail any obligation for Skill on Net to act, as the violations no longer exist, as the company has subsequently revised its business procedures and whistleblower scheme.
Last year, the company was slapped with a £305,150 ($377,917) penalty over social responsibility and anti-money laundering failures uncovered by the UK Gambling Commission.
Original article: https://www.yogonet.com/international/noticias/2024/04/09/71634-danish-gambling-authority-hits-skillonnet-with-five-injunctions-and-reprimands-for-aml-violations
