Tipwin Gets Three-Month Deadline to Fix Money Laundering Violations

Denmark’s gaming regulator Spillemyndigheden has filed a police report against German operator Tipwin for failing to manage the risk of money laundering and breaching a few sections of the Anti-Money Laundering Act.

What Rules Did Tipwin Disobey? 

Gaming companies that are getting ready to sell their retail bets need to prepare a risk assessment. Tipwin had until May 16 to obey this rule but failed to comply. The operator was also supposed to provide a series of printed policies regarding its retail offerings, which again it failed to do. Even more, the company went over the May 25 deadline it was given to provide the mandatory business procedures and controls in relation to its brick-and-mortar offering connected to money laundering. 

The Danish gaming authority takes these regulatory steps extremely seriously, calling the legislation on money laundering policies, risk assessment, and business controls “very fundamental” parts of the country’s Money Laundering Act. Without a proper risk assessment, the German company that offers real-time bets on mobile could not explain the extent to which it would be exposed to money laundering or terrorist financing. The operator also failed to announce which measures apply to the mitigation of its money laundering risks.

In the context of a missing risk assessment, the regulator decided to hand the case over to the authorities for further investigation. Spillemyndigheden also issued an order regarding the breach of rules regarding the procedures connected to online betting and gaming casino operations.

Tipwin Has Three Months to Make Amends

The Danish regulator gave the operator three months to make amends and correct its wrongdoings, including the obligation to train its staff about its money laundering policies. The measure comes in the context of a series of additional money laundering rulings from the same regulating body. At the beginning of the year, Reel Denmark was rebuked over similar money laundering failures. At the beginning of May, bet365 was also scolded for anti-money laundering failings.

During the same month, Spillemyndigheden issued a reminder for gaming companies regarding their obligation to fully comply with the legislation that forbids them to have any types of financial interactions with entities, countries, groups, or individuals. Denmark’s strict gambling regulations proved their effectiveness through detailed compliance checks that revealed over 250 criminal cases in the past two years. According to a May report issued by the Danish Gambling Authority, close to 30,000 gamers are suffering from “severe gambling problems” in the country.