SkillOnNet is facing serious trouble in Denmark for not adhering to regulations concerning money laundering.
The Danish gambling authority, Spillemyndigheden, has imposed three prohibitions and two accusations on SkillOnNet for violating anti-money laundering legislation.
SkillOnNet believed they were in compliance, but the authority uncovered significant issues with their documentation and internal procedures. They’ve been instructed to rectify their risk assessments, revamp their internal processes, and ensure robust whistleblower protection. They have a two-month timeframe to address these concerns.
The Danish Gaming Authority declared: “Comprehensive risk evaluations, business operations, and whistleblower systems are essential to anti-money laundering laws, and thus the seriousness of the infractions led to three bans and two legal actions.”
SkillOnNet, in a statement shared with iGB, stated: “Skill On Net Ltd upholds high standards of anti-money laundering measures in Denmark, as it does in all operational markets. We are taken aback by the Danish Gambling Authority’s (DGA) decision to issue three directives to enhance internal anti-money laundering procedures and the documentation and detail of the description of anti-money laundering measures.
“These directives are entirely about more detail in the description of procedures, and SkillOnNet suspects there may be a misinterpretation. We have been collaborating with the DGA to fully comprehend the improvements they believe need to be implemented.”
A closer examination of SkillOnNet’s violations in Denmark
The initial prohibition was issued because SkillOnNet’s risk assessment was faulty, and it was discovered not to address the risks of the company’s business model, including payment solutions and products, thereby violating the anti-money laundering law’s Article 7 obligation regarding risk assessment.
Prohibition B relates to Article 8 of the anti-money laundering law. It concerns the failure of SkillOnNet’s written business operations to communicate how, when, and by whom checks are conducted to ensure the implementation of internal controls.
The directive was given because SkillOnNet couldn’t supply suitable paperwork for the verifications they conducted.
The Danish Gaming Authority stated the initial accusation was due to “faulty” business procedures for establishing customer connections before October 16th, 2023. They stated the firm was performing customer checks at inappropriate times, violating the Anti-Money Laundering Act.
The second accusation was because SkillOnNet didn’t verify for politically influential individuals or their close associates and business partners. They didn’t check payments that were below a particular sum, which is against the law.
The third accusation was because SkillOnNet’s whistleblower program wasn’t confidential. Individuals could only report issues by email, which isn’t permissible. The law states workers should be able to report money laundering anonymously and through a separate system.
What might occur to SkillOnNet?
The Danish Gaming Authority has been very strict about halting money laundering recently. They initiated a campaign in July 2022 to combat money laundering, following the Ministry of Justice’s strategy.
In 2023, a company called Tipwin was penalized 100,000 Danish kroner for violating money laundering regulations.
More than twelve months ago, Tipwin’s improper actions were brought to light.
Tipwin’s improper actions included serious and careless breaches of risk assessments, policies, and internal control regulations, similar to SkillOnNet’s transgressions. Besides Tipwin, other operators recently facing prohibitions for anti-money laundering reasons include Casumo, Casino Copenhagen, and Bet365.
Money laundering is not the only area of concern for the Danish Gambling Authority, unlawful gambling is also within its purview.
In a new report, the Danish Gambling Authority detailed how it suppressed illegal activities in 2023. This encompassed both online and land-based sectors in Denmark.
The regulatory body stated that Stake.com was the most noteworthy operator blocked last year. This occurred after it obtained a court order to block 49 websites deemed to be operating illicitly in Denmark.
SkillOnNet’s Anti-Money Laundering Failures in the UK
SkillOnNet’s difficulties in Denmark came after the UK Gambling Commission ordered it to pay £305,150 (€350,351/$378,299). This was due to a series of anti-money laundering and social responsibility failures.
The company was ordered to pay this amount in place of a penalty as it reached a settlement agreement. The funds will be used for social responsibility initiatives.
The Commission’s regulatory review of SkillOnNet between January 2021 and December 2022 found that the operator failed to comply with several licensing conditions and codes of practice (LCCP).
Similar to the challenges encountered in Denmark, SkillOnNet’s primary difficulties in the UK were a deficiency in robust policies, regulations, and procedures to curb money laundering. Furthermore, they lacked sufficient safeguards and measures to promote responsible gambling practices.
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