LeoVegas, Spillehallen online casinos cop to Danish AML shortcomings

Online casino operators LeoVegas and Spillehallen have been (very lightly) spanked by Denmark’s gambling regulator for failing to observe anti-money laundering (AML) obligations.

On Monday, Denmark’s Spillemyndigheden regulatory agency reported that it had issued a ‘reprimand for non-compliance’ against LeoVegas for flaws in its customer verification process. The matter was brought to the regulator’s attention by the company, which detected the problem during an internal investigation.

The flaw, which involved new customers who registered with the company’s Danish-licensed site between June 2019 and May 2020, involved converting temporary accounts to final accounts without the required customer verification. Specifically, the accounts in question were all approved using NemID, a popular online banking log-in solution for Danish residents.

However, Spillemyndigheden prohibits online licensees from using NemID as a standalone registration unless a risk assessment has been made. Otherwise, “NemID cannot stand alone and must thus be supplemented by another control source or other mitigating measures.”