Danish Regulator Takes Action Against Mr. Green Limited

Article by : Milena Petrovska Apr 18, 2024

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The Danish Gambling Authority has slapped Mr. Green Limited with three orders for breaching its AML Act and reprimanded it for breaching AML rules regarding notification.

The three orders were on:

• failing to ensure that its controls are being carried,
• insufficient risk assessment,
• lack of business procedures.

These actions were taken on April 10, 2024. According to the Danish regulator, Mr. Green Limited must act and submit revised documents on the orders no later than June 10. New assessments for controls are to be submitted no later than October 10, 2024.

Orders by Danish Gambling Authority Explained

Order (a) by the regulator is regarding the risk assessment.

According to the Danish Gambling Authority, Mr. Green Limited breached section 7(1) of the AML Act. Supposedly, the operator failed to make individual risk assessments regarding the company’s business model, such as the payment options and all associated factors.

Next, Order (b) is regarding section 8(1) of the AML Act.

Mr. Green Limited supposedly didn’t have procedures regarding internal controls because it didn’t state the intervals at which they were being committed. Section 8(1) states that the business model must have adequate business procedures (written) and that they must include internal controls.

Order (c) also concerns section 8(1).

Mr. Green Limited didn’t have the documentation to verify that internal controls took place, so it did not comply with the regulations.

The Reprimand Explained

The reprimand by the Danish Gambling Authority states that Mr. Green Limited didn’t comply with the Money Laundering Secretariat’s requirement for immediate notification on two occasions. Section 26(1) of the AML Act states that an entity is obliged to inform the Money Laundering Secretariat if it suspects that any activity is linked to terrorist financing or money laundering.

Mr. Green supposedly uncovered two cases of suspicious activities/transactions related to the two fraud types. Yet, the operator didn’t send an immediate notification. The company’s reprimand doesn’t have a date on which it has to act because the breach itself doesn’t exist anymore.

It remains to be seen how the situation will unravel in the upcoming summer season.

Busy Months for DGA

The Danish regulator’s past couple of months have been dynamic. At the start of April, the authority slapped Skill on Net with three orders and two reprimands, identical to the ones of Mr. Green Limited.

Reprimands included inadequate business procedures and an inadequate whistleblower scheme. According to the orders, Skill on Net must submit a revised risk assessment and business procedure controls for internal controls within two months.

Additionally, it must submit documentation that the internal controls have been implemented within the next six months.

All of these actions are the result of the DGA trying to make the gambling market safer for players.

Most recent research shows that the country’s ROFUS program (register for self-exclusion) is working at full speed. In April 2024, the number of Danish players who entered self-exclusion reached 50,000.

Regulatory research states that the increasing number of players registering may be the result of DGA’s efforts to improve awareness of ROFUS in the past couple of years. Out of the 50,000 registered individuals, 64% opted for permanent exclusion.

Moreover, StopSpillet, the gambling addiction helpline created by the DGA, reported that it has received 2,933 inquiries ever since its establishment in 2019.