The Swedish gaming firm, LeoVegas, faced scrutiny from the Danish gambling regulator, Spillemyndigheden, for failing to adhere to customer verification protocols. This is crucial as it pertains to preventing illicit financial transactions.
The Danish authority examined 20 of LeoVegas’s most significant patrons and discovered that five of them violated anti-money laundering regulations between 2017 and 2019. These individuals deposited substantial sums into their accounts, ranging from 1.2 million to 1.67 million Danish kroner, without LeoVegas verifying the origin of these funds.
In most instances, LeoVegas exhibited significant delays in reporting these players to anti-money laundering authorities, waiting between 10 and 22 months, and only after the regulator inquired about the accounts.
The Danish authority emphasized the paramount importance of customer due diligence and reporting suspicious activity in combating money laundering, underscoring that violations of these regulations could result in sanctions such as a ban or a warning, as in this case.
While LeoVegas wasn’t punished for any rule-breaking, changes to its work methods in 2020 will help spot similar issues more quickly in the future.
LeoVegas got its license renewed by the Danish Gambling Authority earlier this month, allowing it to offer betting and casino services in Denmark until 2026.
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