The Danish Gaming Authority (DGA) levied five anti-money laundering sanctions against SkillOnNet.
The company received three directives and two warnings because of deficiencies in their anti-money laundering protocols. In essence, the DGA determined that SkillOnNet was not taking sufficient measures to prevent money laundering via their platform.
The DGA’s inquiry revealed problems with SkillOnNet’s risk evaluation processes. They were not appropriately assessing the risks linked to their various products and payment methods, a significant breach in the realm of AML adherence. SkillOnNet also neglected to maintain adequate records of their internal controls for deterring money laundering – a crucial requirement for demonstrating conformity.
Due to these lapses, SkillOnNet has been instructed to present a revised risk assessment and other required documentation within eight weeks. They must also furnish proof that they have implemented more robust internal controls within six months.
The Danish Gaming Commission penalized SkillOnNet for failing to comply with anti-money laundering regulations. Apparently, they neglected to submit the necessary documentation to demonstrate adherence to the guidelines, a major violation as per section 8, subsection 1 of the Anti-Money Laundering Act.
Furthermore, the Commission expressed dissatisfaction with SkillOnNet’s onboarding procedures for new clients. They discovered significant flaws in the process, essentially a discrepancy between the company’s stated practices and the reality. This issue persisted until at least October 16, 2023, potentially breaching numerous regulations, including (but not limited to!) sections 8(1) and 18(1) of the Act.
To make matters worse, SkillOnNet also mishandled its whistleblowing mechanism. Until June 2023, the sole method for reporting suspicious activity was via email – hardly a secure way to maintain confidentiality! This poses a serious problem as it contradicts section 35(1) of the Act, which focuses on safeguarding the identities of those who come forward.
