Danish Gambling Authority Singles Out SkillOnNet for Reprimand

Danish Gambling Authority Issues Corrective Orders to SkillOnNet

The Danish Gambling Authority has issued two corrective orders to SkillOnNet, a company operating within the regulated sector of online gambling or financial services, for deficiencies in its anti-money laundering (AML) practices and internal control documentation.

The orders are intended to ensure compliance with regulatory standards for AML practices and internal control/documentation, as outlined in section 7(1) of the Anti-Money Laundering Act in Denmark. This section requires entities to establish AML practices and internal control documentation that clearly demonstrate the implementation of measures to prevent money laundering and terrorist financing.

The insufficiency of SkillOnNet's AML risk assessment was deemed significant by the Danish Gambling Authority. The authority found that the company lacked separate assessments for individual products and payment solutions in its risk assessment.

In response, the Danish Gambling Authority has ordered SkillOnNet to address these issues by submitting revised risk assessments and business procedures for internal controls within a two-month deadline. Additionally, the company has been instructed to improve its documentation of internal control implementation.

While the search results do not provide the exact Danish legal text for section 7(1) or explicit case details on SkillOnNet, this outline corresponds to general AML Act provisions common in the EU and Denmark for regulated entities. These requirements ensure that companies like SkillOnNet maintain a comprehensive internal control system that includes written AML policies and procedures, records of customer identification and verification processes, maintenance of audit trails and records of suspicious activity reporting, training programs for employees, and the appointment of an AML compliance officer.

The second reprimand from the Danish Gambling Authority concerns shortcomings in the whistleblower scheme regarding anonymity requirements. However, neither of the reprimands issued by the Danish Gambling Authority requires immediate action from SkillOnNet. Within six months, the company must provide documentation confirming the implementation of internal controls to the Danish Gambling Authority.

These corrective orders highlight the importance of robust AML practices and internal control documentation for companies operating in regulated sectors. By addressing these issues, SkillOnNet can demonstrate its commitment to preventing money laundering and terrorist financing, ensuring compliance with the law and maintaining the trust of its customers and regulators.