The Gambling Authority of Denmark has reprimanded the gaming company Reel Denmark Ltd. for breaching the know your customer (KYC), investigation and reporting obligations of the country’s AML Act.
Reel allowed a player to deposit DKK 2.4 million ($370,000) in 2019 and 2020 without recording the source of funds. In 2021, when the Gambling Authority chose this player for a spot check related to responsible gambling and ML, Reel requested the required data. Reel’s favorable conclusion about the client’s income and employment records was also misguided. Indeed, the player had deposited substantially more money to his gaming account than he could afford.
The Gambling Authority found Reel to be in breach of KYC obligations because it should have obtained the information sooner. Further, the authority pointed out that Reel should have investigated the player’s financial circumstances more thoroughly. Based on the available red flags, Reel should have suspected that the client was involved in ML. Further, it should have promptly reported the matter to the relevant authority. Reel only reported the case nearly two years later, when the Gambling Authority consulted it. Reel has already taken measures to correct its errors by introducing new KYC and investigation procedures to prevent future violations.