Spillemyndigheden, the Danish Gambling Authority, has issued six orders to Royal Scandinavian Casino Århus I/S for breaking risk assessment and anti-money laundering (AML) protocols. The orders point out a number of flaws in the casino’s identification and risk assessment processes, business procedures, supervision, training materials, and client due diligence methods. Royal Scandinavian Casino Århus I/S has been given three months to fix the problems outlined in the orders.
Order a – Inadequate Customer Identification and Risk Assessment
Royal Scandinavian Casino Århus I/S failed to properly identify and assess client types such as foreign politically exposed persons (PEPs) and PEPs in international organizations, as well as their family members and close acquaintances. Furthermore, the casino failed to complete risk assessments for individuals facing financial sanctions. The absence of a full risk assessment for visitor profiles suggests that their business strategy is only partially covered.
Order b – Insufficient Business Procedures
There are no well-defined and documented business procedures at the casino. Inadequate procedures were noted for executing high-risk customer due diligence measures, expanded customer due diligence measures for PEPs and their associates, and reporting duties. This directive emphasizes the significance of developing strong and unambiguous protocols.
Order c – Failure to Comply with Internal Controls
Royal Scandinavian Casino Århus I/S failed to follow its own business procedures for carrying out internal controls connected to client due diligence measures, investigation and registration processes, reporting duties, and record-keeping. Failure to adhere to established protocols affects the efficacy of AML initiatives.
Order d – Inadequate Training Materials
The casino does not have sufficient training materials on expanded customer due diligence processes for PEPs, preventing terrorist financing, and persons subject to financial penalties. Inadequate training material increases the danger of staff not knowing enough about AML duties relevant to the casino’s activities.
Order e – Inadequate Customer Due Diligence Measures
Royal Scandinavian Casino Århus I/S failed to perform necessary client due diligence processes, as indicated by improper customer verification in accordance with the AML Act. This emphasizes the significance of proper consumer identification and verification procedures.
Order f – Insufficient Due Diligence for High-Risk Third Countries
The casino did not take adequate customer due diligence processes for guests from high-risk third countries, including failing to gather information on the origin of funds and the source of customers’ assets. This order emphasises the importance of stringent due diligence procedures when working with consumers from high-risk jurisdictions.
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