SkillOnNet ordered to strengthen AML policies and procedures

iGaming operator and supplier SkillOnNet has been reprimanded by the Danish Gambling Authority for having inadequate processes to manage customer relationships and money laundering risks.

The company has also received three orders from the gambling regulator for having inadequate risk assessments, inadequate business processes, and a lack of documentation of its internal controls.

The orders and reprimands follow an inspection by the Danish Gambling Authority, which found that SkillOnNet did not have an adequate risk assessment procedure to identify all the risks associated with its business model, particularly products and payment solutions.

The inspection also found failings in the company’s written procedures and record keeping relating to internal controls, in breach of anti-money laundering legislation.

The two reprimands were issued after the company was found to have failed to comply with the obligation to have sufficient written procedures to implement customer due diligence procedures, and for having an AML whistleblower scheme which failed to adequately protect the identity of whistleblowers, again in breach of the Anti-Money Laundering Act.

“The orders entail an obligation for Skill on Net to act. This means that Skill on Net must, within two months, submit a revised risk assessment, business procedures for the control of internal controls, and within six months submit documentation that internal controls have been implemented,” said the Danish gambling regulator.

“The reprimands do not entail any obligation for Skill on Net to act, as the violations no longer exist, as Skill on Net has subsequently revised its business procedures and whistleblower scheme.”

The three orders and two reprimands all relate to shortcomings identified in 2023 and follow SkillOnNet's £305,150 settlement with Britain's Gambling Commission in May 2023 for similar offences.