Sports betting business Cashpoint Limited has received a harsh rebuke from the Danish Gambling Authority (DGA) for breaching Denmark’s Anti-Money Laundering (AML) Act.
The regulator has issued an order and two reprimands over the company’s failure to carry out an adequate risk assessment in regard to money laundering and the financing of terrorism.
Its first reprimand was given because Cashpoint Limited “has not made a sufficient identification” of the risks related to “customers, products and payment methods”, while its second concerned the company’s business procedures, which did not “sufficiently describe how, when and by whom specific activities were to be performed”.
In a statement, the DGA stressed the importance of compliance with its rules regarding risk assessments and business procedures.
“The Danish Gambling Authority notes that the rules on risk assessment and business procedures are fundamental parts of the Anti-Money Laundering Act,” it remarked.
“Breaches of the rules lead to an order or warning, and in cases of serious or repeated breaches, they lead to a report to the police.”
The regulator said its order obliges Cashpoint to submit an updated risk assessment that “addresses the identified failure.” However, the reprimands “do not entail an obligation to act”.
Cashpoint is part of the Gauselmann Group, and falls within the German gaming company’s sports betting business segment. It entered the Danish market in 2012, establishing its national headquarters in Rødovre, near Denmark’s capital city, Copenhagen.