Online casino provider Mr Green has been issued a warning by the Danish Gambling Authority, Spillemyndigheden for infringing a section of its Anti-Money Laundering (AML) Act and not abiding by the obligatory Know Your Customer (KYC) measures. The regulator cautioned the provider for carrying out insufficient checks and not being sufficiently knowledgeable about the sources of player funds.
Regulated by the Malta Gaming Authority, with its head office in Malta, Mr Green is known to be a well-respected operator within the iGaming sector. However, this latest update has raised a few red flags. Moreover, it should also serve as a warning to players that choosing a reputable provider and knowing where to look for a good online casino that is compliant with legalities should never be underestimated.
Loophole Comes to Light as Player Deposits $45,000
The loophole came to light after a player was permitted to deposit $45,000 into an account over 2021. Mr Green did not possess adequate information about the nature of the funds, that is, whether or not they came from criminal proceeds. Spillemyndigheden argued that in failing to investigate the origin of the funds, Mr Green had infringed two provisions of the Know-Your-Customer (KYC) rules, namely, in sections 10(1) and 11(1)(5) of the AML act.
As per the regulator, the KYC checks and investigations are an important part of the AML act. The act covers all gambling products and enjoins gambling providers to prevent money-laundering and terror-financing by certain policies, procedures, and controls.
Mr Green did not investigate the unusually large amount deposited by the player and was unable to furnish requisite details about the same. Hence, Spillemyndigheden took it as a grave offence and cautioned the casino operator.
Mr Green Dismissed Investigation
In response to the Danish regulator’s admonishing, Mr Green insisted that it had access to the player’s income and profession through internet searches. The provider said that they found that even though the player had deposited more than their disposable income in the account, they could sustain their gambling easily through their mentioned income. The research had assured Mr Green that nothing was amiss, therefore, it did not deem it necessary to investigate the matter further.
However, the regulatory body found Mr Green’s assumptions about the player and their source of funds as entirely inaccurate. As the player’s deposits exceeded their income, it was established that the casino provider had lacked in carrying out the due procedures entailed under the AML act.
Spillemyndigheden held the view that Mr Green was thoroughly responsible for its failure and that it should not have closed its investigation at an early stage. The initial checks were not sufficient to dismiss any suspicion of terror financing or money-laundering activity.
Light Slap on the Wrist By Regulator
Despite Mr Green’s inability to conduct deep checks into the matter, the Danish regulator let it off with a mere slap on the wrist. However, the body did emphasise that if the casino provider failed to comply with any other provisions highlighted in the AML act, it would face sanctions. The police might also be involved, if other serious matters crop up.
As no further action was taken by Spillemyndigheden, Mr Green introduced new business procedures to ensure customer welfare and comply with mandatory investigation procedures as put down in the AML act.
However, this is not the first time that Mr Green has found itself in a tough spot. The provider had run into trouble with Spillemyndigheden in August 2021 due to another failure to abide by the customer wellbeing principles.
The regulator alleged that Mr Green had fallen short of the duty of care and had slapped it with a fine of $3.6 million. Besides Mr Green, operators like Reel Denmark Limited and Kindred Group brand Unibet were also found guilty of violating the provisions of the AML act as they failed to ascertain the correct information about customers’ backgrounds.
