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Mr Green Limited has been hit with three injunctions and one indictment by the Danish Gambling Authority (DGA) for failings in its AML procedures.

Last week, the regulator issued warnings to the operator and demanded changes in its AML reporting procedures.

By 10 June, Mr Green must submit a revised risk assessment to the DGA, alongside a revised business process for its internal AML controls.

Subsequently by 10 October, the operator must submit documentation demonstrating that checks have been carried out according to its newly established procedures.

Three injunctions

The business was hit with three injunctions relating to deficiencies in its AML procedures and the related reporting processes.

The first injunction was issued for not having carried out a sufficient risk assessment of the business and its suppliers, including payment providers.

“It is the Gambling Authority’s assessment that a separate assessment of the risk of the individual payment solutions and delivery channels must be carried out” under Denmark’s Money Laundering Act, the DGA said.

Mr Green was found to be in contravention of the above rule, having failed to carry out a business-specific risk assessment accounting for its payment providers.

Secondly, the DGA found that the operator “does not have sufficient business procedures for internal controls, as these do not describe the interval at which the controls must be carried out.”

Furthermore, Mr Green did not have written procedures detailing how checks are to be carried out, the DGA said, while it was also found to be missing a secondary procedure to ensure that “checks are carried out on the checks” – that is to say, that the business continually monitors the execution of its own AML procedures.

A third injunction was issued because the operator had failed to document the checks and internal controls that had previously been carried out.

Indictment for reporting failure

In addition to its three injunctions, the DGA also hit Mr Green with an indictment for failing to immediately notify the regulator of suspicious transactions.

Denmark’s Money Laundering Act requires companies to “immediately notify the Money Laundering Secretariat if the company is aware of, suspects or has reasonable grounds to suspect that a transaction, funds or an activity is or has been connected to money laundering or the financing of terrorism.”

The DGA ruled that Mr Green had failed to comply with this regulation, as there had been no immediate notifications made to the Secretariat.

The indictment itself does not require any specific action from Mr Green, though the regulator warned it to ensure any future suspicious activity is reported immediately.

Similar cases

The warnings followed a similar pattern to those issued to SkillOnNet earlier this month.

SkillOnNet was also issued with three injunctions, in addition to two indictments from the regulator, relating to failings in its AML procedures and reporting processes.

That company was also warned over a lack of consistency in its KYC procedures, and similarly to Mr Green was ordered to submit a revised risk assessment and documentation showing checks had been carried out to the regulator.

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