the danish gambling authority's guide on preventive measures

Version 1.1 – 17 July 2013

The Danish Gambling Authority’s

guideline

on preventive measures against

money laundering and terrorist

financing

in the casino sector


2

Table of content

1. Preamble........................................................................................................................................... 4

1.2 Laws, regulations and guideline ................................................................................................. 4

2 Risk assessment of the casino company ........................................................................................... 7

2.1 Risk management and the use of a risk based approach ............................................................ 7

2.1.1 Risk factors for online casino .............................................................................................. 8

2.1.2 Risk factors for land-based casino ..................................................................................... 10

3 Internal rules ................................................................................................................................... 13

4 Know your customer – online casino .............................................................................................. 14

4.1 Registration of costumers ......................................................................................................... 14

4.2 Verification of the customer’s identity ..................................................................................... 14

4.2.1 Politically exposed persons residing in another country ................................................... 16

4.3 Storage of identity information etc. .......................................................................................... 18

4.4 Updating of information while the customer relationship is ongoing ...................................... 18

5 Know your customer – land-based casino ...................................................................................... 19

5.1 Registration of players.............................................................................................................. 19

5.2 Identification of the player ....................................................................................................... 19

5.3 Identification after arrival ......................................................................................................... 20

6 Awareness duty ............................................................................................................................... 21

6.1 Awareness duty for online casino ............................................................................................ 21

6.1.1 Large transactions .............................................................................................................. 22

6.1.2 Unusual and complex transactions .................................................................................... 22

6.1.3 The FATF-list .................................................................................................................... 23

6.2 Awareness duty for land-based casinos.................................................................................... 23

7 Monitoring of players...................................................................................................................... 25

7.1 Particularly for online casino ................................................................................................... 25

7.2 Monitoring on land-based casinos ............................................................................................ 26

8 Examination and noting duty .......................................................................................................... 27

8.1 Examination duty ..................................................................................................................... 27


3

8.2 Noting duty ............................................................................................................................... 28

9 Notification ..................................................................................................................................... 30

9.1 Notification to the State Prosecutor for Serious Economic and International Crime .............. 32

9.2 Suspending online casino transactions ..................................................................................... 33

9.3 Notifying the Danish Gambling Authority ............................................................................... 33

10 Storing of documents and registrations ......................................................................................... 34

11 Internal control .............................................................................................................................. 35

12 Education and instruction programs ............................................................................................. 36

13 Confidentiality .............................................................................................................................. 37

14 Penalty clauses .............................................................................................................................. 39


4

1. Preamble The gambling area regulations on preventive measures against money laundering and terrorist

financing shall contribute to the combat of crime by

limiting the possibilities of abusing the casino business for money laundering and terrorist

financing purposes,

easing the police’s crime investigation, and

preventing the remittance of criminal proceeds into the legitimate national economy.

Money laundering includes transactions and activities concerning the proceeds of crime, including

receiving profits and actions carried out in order to hide the funds’ origin, movement, ownership

etc. or in any other way secure the proceeds. Using proceeds of crime in gambling is therefore

among other things covered by the definition of money laundering.

Terrorist financing includes giving direct or indirect financial support to mobilise or collect funds to

- or financial services set at the disposal for persons, groups or organisations that have committed or

intend to commit terrorist acts.

For both online and land-based casinos there are rules concerning the efforts taken against money

laundering and terrorist financing. The money laundering regulations do not cover the revenue-

restricted licences1 to online casino. Moreover, the regulations do not apply when providing other

types of games such as betting or land-based provision of gaming machines.

The guideline includes instructions on how the regulations must be met by the licence holders,

employees and other staff members involved in the casino activity. With regards to the areas in

which it is up to the above-mentioned groups to carry out a risk assessment, the guidelines include

instructions on how the regulation requirements can be met.

The regulations on preventive measures of money laundering and terrorist financing are risk based.

This means that the casino company must arrange internal procedures on the basis of the its

business model and the estimated risk of the company being abused to launder money or finance

terrorism.

A risk based approach requires that the casino has a good understanding of the existing risks and is

capable of executing reasonable judgment. This requires accumulating expertise through e.g.

education, guidance, professional counselling and “learning by doing”.

The casino is obligated to report to the State Prosecutor for Economic and International Crime

(SEIC) on for example customers who have financial funds whose origin cannot be directly

explained, even though the transaction itself will not immediately contribute to money laundering.

1.2 Laws, regulations and guideline The guideline describes the regulations of the:

Act on Gambling no. 848 of July 1 2010

Executive order on online casino – order no. 67 of January 25 2012

1 A licence with a maximum duration of 1 year where the gross gambling revenue does not exceed DKK 1 million.


5

Directive 2005/60/EF of the European Parliament and of the Council of October 26 2005

on the prevention of the use of the financial system for the purpose of money laundering

and terrorist financing

Executive order no. 1347 of the Danish Financial Supervisory Authority of December 3

2013 on countries and territories where there is deemed to be a certain risk of money

laundering or terrorist financing (the FATF-list).

The Danish Gambling Authority has prepared legal guidelines on the gambling act and its executive

orders, which gives an overview over the use of the different legal acts in the area of gambling. The

legal guidelines can be found on spillemyndigheden.dk Legislation. Moreover, guidelines on the

registration of players etc. can be found in the Danish Gambling Authority’s “Guideline on betting

and online casino”.

Further guidance concerning money laundering and terrorist financing can be found in the typology

reports that are continuously being prepared and published by FATF2. The reports from FATF

include risk studies of particular areas, businesses, products etc. using the so-called suspicion

indicators. These reports can be found on FATF’s homepage.

Risk-Based Approach Guidance for casinos on how online and land-based casino providers can use

the risk based approach to make an assessment of players, etc. in order to prevent and stop money

laundering and terrorist financing.

Vulnerabilities of Casinos and Gaming Sector identifies the land-based casino providers’ vulnerable

areas where a particular risk of money laundering and terrorist financing is present.

In the section below you will find a list of general examples of how the casino sector can be abused

by criminals. In the FATF-report on the casino sector there are more examples of and more

information about the risk factors of the business.

The use of chips as payment in illegal transactions

Criminals may wish to exchange money into chips which they can afterwards use as payments in

illegal transactions. The chips can contribute to strengthening the alibi of the criminal as they

indicate that the funds originate from casino visits and not from a criminal action.

Purchase of chips

By having credit-card receipts showing that a large amount of money has been spent on a casino,

the criminal can try to hide criminal earnings by making them appear as casino prizes e.g. by

buying chips, but not using them for gambling. Similarly, criminals can be interested in buying

chips from other players in order to have funds appear as prizes.

2 Financial Action Task Force (FATF) is an independent international organization which develops and promotes ways

to protect the global financial system against money laundering and terrorist financing. The FATF-recommendations are

recognized as the global standard for combatting money laundering and combatting terrorist financing.

Recommendations from FATF are built upon a risk based approach to the fight against money laundering and terrorist

financing.

http://www.skat.dk/getFile.aspx?Id=103769

http://www.skat.dk/getFile.aspx?Id=103769

http://www.fatf-gafi.org/

http://www.fatf-gafi.org/media/fatf/documents/reports/RBA%20for%20Casinos.pdf

http://www.fatf-gafi.org/media/fatf/documents/reports/Vulnerabilities%20of%20Casinos%20and%20Gaming%20Sector.pdf


6

Transfer of funds to other accounts

The criminal can hide the origin of funds by placing the funds on a gambling account through one

type of payment and afterwards have the amount paid out through another type of payment. This is

especially evident when payments are carried out with prepaid cards.

Platform games

When playing in networks criminals can be interested in losing on purpose to other players in order

to make funds appear as prizes.


7

2 Risk assessment of the casino company

It is the responsibility of the casino company’s top management to secure that the company

complies with the money laundering regulations. The management should secure that their

involvement in subjects concerning money laundering and terrorist financing is visible to the board

and all employees and business partners. Management has a personal responsibility to secure that

sufficient control measures and working procedures are in place in the casino.

The casino company must appoint a person from management who must secure that the company

complies with the regulations. Online casinos must have the person responsible approved by the

Danish Gambling Authority. If a new person is appointed, the Danish Gambling Authority must

approve the person in question. If changes are made, use form 29.098 – Changes of the licence to

provide betting and online casino - which you can find on the Danish Gambling Authority’s

homepage www.spillemyndigheden.dk Forms.

2.1 Risk management and the use of a risk based approach The regulations stipulate that a casino must have sufficient internal rules about controls, risk

assessment and communication, also called risk management.

The casino’s risk management in relation to money laundering should be based on the casino’s

business model and the possible risks of the casino being abused for money laundering or terrorist

financing purposes.

The casino should start from “above” by making a qualified analysis of the extent to which its

business model and business activities carry the risk of the casino being exploited in the form of

money laundering or terrorist financing.

The risk assessment should be based on an analysis of e.g.

The company’s customer types.

Products.

Deliverance systems i.e. the way that the company makes its products available to

customers (by physical appearances, the Internet, etc.).

Business and transactional scope.

Geographical risks.

Based on the overall risk assessment the casino must determine a risk management policy that is

approved by the management. Risk assessment and risk management policy should be written down

and reviewed regularly.

Risk management is used to assess whether a transaction might have or has had a connection to

money laundering or terrorist financing after which the licence holder examines the transaction

more closely.

Based on the risk management the casino must adopt different working procedures that are

customized to reduce the risk of money laundering and terrorist financing. The strategies that are

established to handle money laundering and terrorist financing in the casino should be designed in a

http://www.spillemyndigheden.dk/


8

manner that makes it possible to identify or prevent illegal activities. This can be done through a

combination of deterrent measures such as:

Evaluation of customer and transactional risks.

Handling the customer’s account.

Appropriate identification measures for players.

Storing of the registrations that can be useful in criminal investigations.

Disclosures, e.g. surveillance and reporting of suspicious activities and transactions.

2.1.1 Risk factors for online casino

A different range of factors can influence the risk level of the casino. Some of or all of the risk

factors mentioned below can influence the extent of risk in the casino and influence the preventive

measures that are necessary to effectively, but proportionately, manage these risks.

Examples of risk factors could be:

The possibility of temporary player accounts.

The type of players – regardless of whether they are regular players, including VIP-players

or occasional players.

The provision of multilayer games, where you play against other players.

Types of payment methods that are accepted by players, including receiving prepaid cards.

Types of games being offered to players, e.g. card games and roulette.

Type and efficiency of the existing monitoring mechanisms (electronic and/or physical).

If the business model of the casino concerns one of the following options or them both:

- Attracts a large amount of players who play for relatively small amounts, or

- Attracts a smaller amount of players who play for relatively large amounts.

More examples are to be found in the FATF’s typology reports.

In the section below some of the risk factors will be described.

Temporary accounts

Until the costumer’s identify is verified, the person in question is a high-risk customer as the casino

has not yet obtained the necessary information about the customer. Down payments from one

temporary account to another account different from the one which the money was put into,

constitute a risk.

The same is present if the customer has established a temporary account several times.

The use of temporary accounts hereby constitutes a risk factor that must be included in the risk

assessment.

Player categories where activities may indicate an increased risk Different player types that may present an increased risk are listed below.


9

Players who are politically exposed persons

See section 4.2.1.

Players who spend large amounts (big players)

Big players are a risk factor since it can be difficult for the casino to estimate the origin of their

funds.

The definition of a big player can vary according to the casino in question. Generally, players can

be regarded as big players on the basis of their total gambling consumption in a given period of

time. Accordingly, every day players who play for a relatively large amount at limited occasions

can be regarded as big players. Big players can also be players who on a single visit spend a very

large amount of money.

The casino must have guidelines regarding big players and have individual assessments of what

constitutes a big player. These guidelines can cover commercial risks or marketing in order to

identify big players. The casino must ensure that the guidelines concerning money laundering and

terrorist financing are used consistently according to all big players.

A casino must have an understanding of the origin of the big players’ income or fortune. The casino

must prepare guidelines on how the casino can obtain knowledge of the players’ financial resources.

These guidelines should be based on a risk based decision made by the casino. Information on

income and fortune can give certain insights into the likely level of available assets at the players’

disposal.

The casino should also be aware of players who engage in big gambling when this does not

correspond with the player’s gambling profile. The casino should also be aware of the sources of

the player’s assets and/or income or the player’s occupation. If and when this information is

obtained, the information can contribute to the assessment of whether a customer’s level of

gambling is reasonable compared to the assets or income level. For example, it might be sensible to

examine a big player with relatively modest assets or income.

Occasional players

Occasional players, including tourists, can present an increased risk of money laundering or terrorist

financing as it can be difficult to determine whether their transactions deviate from their normal

behaviour.

Included in this category are also regular players who might pose a risk if their gambling

consumption changes, e.g. if their consumption increases dramatically or if their gambling pattern

does not match their player profile.

Methods of payment Prepaid cards

The same risks exist when it comes to receiving prepaid cards and receiving cash as casinos do not

have the possibility to exercise the same control when it comes to prepaid cards compared to regular

bank accounts. If prepaid cards are received, it must be included in the risk assessment. Customers

who often use prepaid cars should therefore be categorised as high-risk customers.

Electronic wallets (e-wallets)


10

E-wallets that only accept money from bank accounts in the name of the customer would normally

not pose any greater or lesser risk in relation to money laundering or terrorist financing compared to

situations when the funds are received directly from a bank.

Network games Online poker games often take place through different platforms. These platforms can be vital when

monitoring whether patterns and values of a game might indicate potential money laundering

activities e.g. chip dumping. The casino and the platform must have clear rules with regards to their

respective roles, notifications, inquiries and consequent actions concerning money laundering and

terrorist financing.

In games where players play against each other there is an increased risk of funds being transferred

between players, which can lead to the origins of the funds being blurred. These games might

therefore constitute an increased risk.

IT-systems

Online casinos are dependent on IT-systems. These IT-systems should be adjusted in order to

secure accurate supervision of accounts and players and secure that the necessary information is

registered and stored. A risk based approach can however not be entirely dependent upon IT-

systems thus there is also a need for human supervision and staff equalling the risk level in the

casino.

2.1.2 Risk factors for land-based casino

A different range of factors influence the risk level of the casino. Some of or all of the risk factors

mentioned below can influence the extent of risk in the casino and influence the preventive

measures that are necessary to effectively, but proportionately, manage these risks.

Examples of risk factors could be:

• Players residing abroad, including especially players from countries which are not in the

EU/EEA or not included on the FATF-list.

• Payment methods, including cash.

• The player’s total number of transactions and/or transaction sizes which are large when

compared to the casino’s resources, which makes surveillance difficult.

• Players who are reluctant to give out information.

• Occasional players, including tourists.

• The size of the casino rooms.

• The location of the casino.

• VIP-rooms and other facilities reserved for big players.

• If the casino’s business model concerns one of the following possibilities or both:

- Attracts a great number of players who play for relatively small amounts, or

- Attracts a smaller number of players who play for relatively large amounts.

• Types of payment methods accepted by the players.

• Types of games offered to the players e.g. card games and roulette.

• The employees’ level of experience.

• Types and effectiveness of the existing surveillance mechanisms (electronic and/or

physical).


11

More examples can be found in the FATF typology reports.

In the section below some of these risk factors will be described.

Player categories where activities may indicate an increased risk

Different player types that might present an increased risk are listed below.

Players who spend large amounts (big players)

Big players are a risk factor since it can be difficult for the casino to estimate the origin of their

funds.

The definition of a big player can vary according to the casino in question. Generally, players can

be regarded as big players on the basis of their total gambling consumption in a given period of

time. Accordingly, every day players who play for a relatively large amount at limited occasions

can also be regarded as big players. Big players can also be players who on a single visit spend a

very large amount of money.

The casino must have guidelines regarding big players and have individual assessments of what

constitutes a big player. These guidelines can cover commercial risks or marketing in order to

identify big players. The casino must ensure that the guidelines concerning money laundering and

terrorist financing are used consistently according to all big players, regardless of whether it is big

players who e.g. have a VIP room or similar.

A casino must have an understanding of the origin of the big players’ income or fortune. The casino

must prepare guidelines on how the casino can obtain knowledge of the players’ financial resources.

These guidelines should be based on a risk-based decision made by the casino. Information on

income and fortune can give certain insights into the likely level of available assets at the players’

disposal.

The casino should also be aware of players who engage in big gambling when this does not

correspond with the player’s gambling profile. The casino should also be aware of the sources of

the player’s assets and/or income or the player’s occupation. If and when this information is

obtained, the information can contribute to the assessment of whether a customer’s level of gaming

is reasonable compared to the assets or income level. For example, it might be sensible to examine a

big player with relatively modest assets or income.

Occasional players

Occasional players, including tourists, can present an increased risk of money laundering or terrorist

financing as it can be difficult to determine whether their transactions deviate from their normal

behaviour.

Included in this category are also regular players who might pose a risk if their gambling

consumption changes, e.g. if their consumption increases dramatically or if their gambling pattern

does not match their gambling profile.

Misuse of a third party Criminals might use a third party, including anonymous persons or agents, in order to avoid


12

identification at the entrance. A third party can also be used in games, e.g. to break up large cash

amounts. It might also be the case that a third party is used to buy chips or to play on behalf of

others or for cash pay-outs/ redemptions of chips for a larger cash amount, casino checks etc.

Casinos must therefore have procedures in place that enable employees etc. to be aware of whether

a player only acts on his own behalf and of whether an organised exchange of chips, money etc.

between casino customers is taking place.

Loan sharks

The casino might have a problem with loan sharks, which occasionally includes threats of violence.

Loan sharks lend money to individuals at rates that are above the legal maximum lending rate, and

they might be financed or supported by organised criminal networks. A loan shark often approaches

people who are having financial difficulties or for some reason do not wish to lend money by legal

means.

Cash

At a land-based casino players can exchange large sums of illegal profit into large bills that are

easier to hide or transport. Certain cash deposits from a customer, namely cash deposits, which are

seen to be relatively large in comparison to either 1) a specific casino’s average deposit, or 2) what

is known of the customer’s financial situation, can also provide a risk factor.

Cooperation with others If the casino has for example commercial events, the casino must make sure that business partners,

and the employees of the business partners, are honest and reliable. This would also be an

advantage in relation to the prevention of money laundering or terrorist financing.


13

3 Internal rules The casino must prepare adequate written internal rules within the area of money laundering. The

internal rules should be based on the casino’s own settings i.e. a risk assessment of the business

model and game types etc. The internal rules must also contain a description of what is understood

by money laundering and terrorist financing and how one could imagine it taking place within the

casino company in question. In addition, the internal rules must include a description of the

requirements that are in force in relation to the Executive order on online casino and the Executive

order on land-based casinos.

The internal rules can consist of a collection of documents which together form the internal rules. It

is not a requirement that there must be a comprehensive document even though this would be

recommendable.

It is not sufficient to just incorporate a copy of the money laundering directive, acts or already

existing guidelines or suggestions to guidelines which alone do not give the employee sufficient

information on how the rules must be administrated in the casino.

The Danish Money Laundering Secretariat under the State Prosecutor for Serious Economic and

International Crime (SEIC) has worked out an overview of possible indicators in concrete customer

relationships that might give rise to deliberations concerning money laundering or terrorist

financing. These deliberations might result in a notification of the State Prosecutor for Serious

Economic and International Crime (SEIC) if they lead to a suspicion that cannot be denied upon

closer examination. The internal rules of the casino could be based on a list of these indicators, to

the extent that they are relevant, and on other indicators of relevance to the casino.

The updated written rules of the casino must be accessible to the employees.


14

4 Know your customer – online casino

4.1 Registration of costumers In order to participate in online casino a player must be registered as a customer. In relation to the

registration, the player must state the following information:

Name

Address

Social Security Number

This information is also referred to as identification information. By this is understood actual

information about a person.

The customer himself must always provide the information. It cannot be completed automatically

when the customer e.g. types a Social Security Number.

If the customer does not have a Social Security Number, similar ID-information must be obtained.

This could be the personal registration number used by public authorities in the country in question,

or, if such a number is not used, information on date of birth combined with place of birth.

By customers without Social Security Number is meant customers who actually do not have a

Social Security Number. Customers without Social Security Numbers are e.g. tourists staying in

Denmark. If the customer does not wish to disclose the Social Security Number or similar

information, the person cannot be established as a player.

The registration of the customer is dependent on the customer acting only on his own behalf.

When the customer has given the required identity information, a temporary account can be set-up

as described in the Executive order on online casino § 6.

Information about the intended extent of gambling

At the time of the registration the licence holder must gather information on the intended extent of

gambling of the player. The information must be gathered from the player himself. The casino can

therefore not on its own estimate the expected gambling extent by looking at the player profile. The

casino can, however, give the player options of choice in the form of e.g. predefined categories. The

player must always specify the extent of gambling.

The information must be used in order to monitor the customer relationship, see below.

4.2 Verification of the customer’s identity It is a basic demand that the casino has knowledge of its customers. The casino must therefore be

convinced that the customer is who he claims to be. There cannot be circumstances that raise doubt

as to whether the customer is who he claims to be.

The minimum standards for securing an identity are verification of name, address and Social

Security Number. All three must be controlled, see below.


15

Documentation of the player’s identity

The information given by the customer must be controlled. The player’s name, address and Social

Security Number must therefore be verified by a reliable and independent source, e.g. the Social

Security register. All three pieces of information must be verified. Thus, it is not sufficient that the

Social Security Number and name are verified. All three pieces of information need not be verified

by the same source.

If a customer has a secret address, the address must still be verified.

For customers without Social Security Number the name and address must also be verified, and

documentation that substitutes the Social Security Number must be gathered. When verifying, the

casino must be aware of the fact that e.g. a passport and driver’s licence does not contain the home

address. A copy of these documents will therefore not be sufficient.

Supplementary documentation

There are requirements of further supplementary documentation of the customer’s identity as this is

an online relationship, i.e. buyer and seller do not meet physically.

Supplementary documentation could be:

Use of verification information from a digital signature.

Submission of photo-ID.

A requirement that the first payment is conducted through a money transfer from the

customer’s account in a financial institution where the customer has identified himself.

The customer is contacted by phone as the telephone number must be verified by a reliable

reference.

A contract or similar is sent to the customer requesting that he signs and returns it.

Photo-ID must originate from a reliable and independent source and will therefore typically be

issued by the public authorities. Information on the photo-ID must be current.

The requirement of a digital signature when logging in does not apply to customers without a Social

Security Number. When establishing a customer without a Social Security number, the customer’s

identity must always be secured in another way.

Additional requirements by increased risk of money laundering and terrorist financing

The casino is obligated to incorporate stricter procedures when an increased risk of money

laundering and terrorist financing is estimated to exist. In every customer relationship the casino

must prove to the Danish Gambling Authority that the extent of the examinations has been

sufficient. The extent of the identification procedure must therefore be determined on the basis of a

risk assessment in each individual case.

Rejecting the creation of a gambling account

A gambling account cannot be created if it has been revealed that the customer has given false

information3. The information can be corrected if the casino estimates that the customer has not

intentionally given false information, e.g. the customer has not stated whether he lives in the right

or left side of a building.

3 A customer giving false information can be deemed a suspicious activity that must be notified if the suspicion cannot

be denied.


16

Setting up player accounts

When the customer’s identity has been sufficiently verified, the customer’s account changes status

from being a temporary account into being a final player account.

Additional guidance

The registration and verification of customers is also described in the Danish Gambling Authority’s

guidelines on betting and online casino chapter 8.2.4.

4.2.1 Politically exposed persons residing in another country4

In connection to the registration of politically exposed persons (peps) there exists an increased risk

of money laundering that is connected to corruption etc.

For customers who fall under the definition of “politically exposed persons” and who are resident in

another country, certain rules apply including the following:

Requirements of particular procedures.

Requirements of information on capital and income sources.

Requirements of enhanced supervision.

What is a politically exposed person?

Politically exposed persons are defined according to the Act on Money Laundering and its

belonging executive orders. This guideline is therefore in accordance with the Danish Financial

Supervisory Authority’s guideline on the Act on preventive measures against money laundering of

profits and terrorist financing.

Definition of a politically exposed person

• Persons who hold or have held a high-ranking public office, their immediate family

members or people known as their close collaborators.

The Danish Financial Supervisory Authority has defined the following examples of politically

exposed persons:

By politically exposed persons, who hold or have held a high-ranking public office, is understood:

Heads of state, heads of government, ministers or vice ministers or deputy ministers

Members of Parliament

Supreme Courts judges, members of the constitutional courts and other high-ranking courts

whose decisions are only subject to further review under extraordinary circumstances

Members of Courts of Auditors and central bank board members

Ambassadors, chargés d’affaires and high-ranking officers in the armed forces

Members of publicly owned companies’ administration, management and controlling

organs.

4 Please notice that one cannot provide gambling outside of Denmark with the same licence that allows one to provide

gambling in Denmark. This section is therefore only relevant when registering people who are temporarily residing in

Denmark.


17

If the person has not held a high-ranking office within at least a year, the person will no longer be

regarded as a politically exposed person. The examples do not include officials on a medium level

or lower.

By immediate family members is understood:

Spouses.

Registered partners.

Children.

Parents.

By close collaborators is understood:

People who have ownership over legal entities and legal arrangements or who in some way

have close business connections to one of the above-mentioned persons.

People who have ownership over a legal entity or a legal arrangement that is established to

the advantage of one of the above-mentioned persons.

Requirements of particular procedures

If the customer is residing abroad, the customer must state the following when registering:

Current position.

Whether the customer holds or has held a high-ranking public office or whether the

customer is related to or has a close collaboration with someone who holds or has held a

high-ranking public office.

In relation to politically exposed persons the casino must:

1) have adequate procedures to be able to determine whether a politically exposed person is residing

in another country, and

2) obtain the approval of the daily management when establishing business connections with these

types of customers. By daily management is meant the casino’s management or the head of the

casino company.

If the casino has many customers residing abroad, it might be relevant to subscribe to services from

international information providers that are specialised in preparing and updating lists over

politically exposed persons.

It might also be relevant that the licence holder routinely searches the customer’s name on the

Internet through a search engine in order to retrieve information about the person.

Other information in the casino’s possession can also contribute to determine if further

examinations must be made into whether the customer is a politically exposed person.

The number of customers residing abroad and the character of the countries in which the customers

are residing can increase the likelihood of a situation where customers who are politically exposed

persons are not on the private provider’s lists. From a risk based approach this could lead to the

casino having to cooperate with locals on the spot e.g. lawyers, bank connections etc. in order to

clarify whether the person is a politically exposed person in the country in question.


18

Requirements of information on capital and income sources

The casino must install reasonable measures in order to obtain information on politically exposed

persons’ capital and income sources that are covered by the gambling activity. This means that the

customer will be asked to present the required information. This information must hereafter be

assessed on the basis of circumstances, including the customer’s transactions.

Enhanced surveillance

The casino must continuously be aware of the business connection with a politically exposed

person. Enhanced surveillance of the customer connection must be established.

4.3 Storage of identity information etc. The casino must store identity information for at least 5 years after the customer relationship has

ceased. See also section 10 on storing of documents and registrations.

By ”identity information” is meant actual information about a person.

The requirement of storing identity information includes that the casino stores information about

which identification documents are being used. This must be seen in relation to the general premise

that the casino must be able to document to the Danish Gambling Authority that the identification

procedure has been adequate regarding the risk of money laundering and terrorist financing.

If the player has shown his passport, the passport number must be noted and stored. When showing

a foreign passport, information on birth data (date and place of birth) must be noted and stored if the

player does not have a Social Security Number. If a driver’s license has been shown, the driver’s

license number must be noted and stored.

Storage after casino activity has ceased

If the casino ceases to exist, the latest functioning management must make sure that identity

information continues to be stored in accordance with § 5, section 3 of the Executive order on

online casino.

4.4 Updating of information while the customer relationship is ongoing Documents, data and other information regarding the customer must be updated continuously.

The casino must always require that a player identifies himself if suspicion exists as to whether a

transaction is connected to money laundering or terrorist financing.

The casino must always require new identification if there is doubt as to whether previous

information obtained about the player’s identity is correct or adequate.

If the extent of a player’s gambling activity changes substantially, the player must renew the

information about the extent of his gambling5.

5 When changes occur in the extent of gambling compared to the stated information this can cause the changes to be

viewed as extraordinary transactions.


19

5 Know your customer – land-based casino

5.1 Registration of players A casino must register the following information about every incoming guest:

- Name

- Address

- Date of birth

- Nationality

- Time of arrival

The casino must at the same time carry out video registration of the guest.

The address must be the player’s permanent address (residence). A PO Box does not fulfil the

requirement. In case the player is homeless, it can be accepted that the guest is registered even

though address information is not available. The player can instead obtain information from the

public authorities confirming that the player is homeless. Alternatively, a person from the public

authorities can accompany the homeless and confirm the identity of the homeless. If address

information is not obtained, the licence holder must be able to explain to the Danish Gambling

Authority why it is not necessary. Similar solutions must be found in other cases of impossibility.

Storage duty

The licence holder must store the registered information for 5 years from the time of the customer’s

visit after which the information must be deleted. See section 10 on storing of documents and

registrations.

Video tapings must be stored for 2 months after the customer’s visit after which the recording must

be deleted.

Storage after casino activity has ceased

If the casino ceases to exist, the latest functioning management must make sure that the identity

information etc. continues to be stored for 5 years.

5.2 Identification of the player When registering, the visitor must show identification that confirms the registered information.

By “identification” is understood documentation proving that the identity information is correct.

This can be e.g. a pass port or a driver’s licence.

That a customer identifies him-self means that the customer gives the required identity information

and shows identification.

The casino must be certain that the player is who he claims to be. There must not be circumstances

that cause doubt as to whether the player is the person presented in the identification documents.

The casino should deny the visitor entrance if there is false or insufficient identification.

The casino must in every customer relationship be able to document to the Danish Gambling

Authority that the extent of the examination (the identification procedure) has been sufficient

compared to the risk of money laundering and terrorist financing.


20

The casino must on the basis of a risk based approach pose further requirements regarding

identification of the player in situations that in themselves carry an increased risk of money

laundering or terrorist financing.

5.3 Identification after arrival The casino must always require that a player identifies himself if there is suspicion of a transaction

having connections to money laundering or terrorist financing.

The casino must also require new identification material if there is doubt as to whether the already

obtained information on the player’s identity is correct or sufficient.


21

6 Awareness duty The overall aim with the awareness duty is to detect possible activities related to money laundering

and terrorism. The awareness duty, which is assumed on the basis of objective requirements,

supplements the on-going monitoring performed on the basis of the casino’s knowledge of the

player. When a player’s activity, due to its particular character, might be related to money

laundering and terrorist financing, the casino’s knowledge of the player can be important in relation

to whether a suspicion arises in the actual case.

The awareness duty is a behavioural norm that the casino and its employees must assume in their

daily work with players and player transactions, regardless of whether an actual suspicion exists or

not.

As a rule of thumb, if it looks suspicious based on existing information and reasonable judgment

then there is a need to examine the matter more closely.

Situations that could objectively indicate money laundering or terrorist financing demand that the

casino company either actually concludes that it is not the case or notifies the State Prosecutor for

Serious Economic and International Crime (SEIC).

A suspicion will normally arise on the basis of an evaluation of the character of the player activities

and any differences compared to normal player activities, concealments and other atypical player

circumstances that altogether bring awareness to an eventual attempt of veiling a profit or a terrorist

financing purpose.

The awareness duty applies regardless whether an actual suspicion of money laundering or terrorist

financing exist.

The duty applies to all types of players, which is why an actual assessment must always be made.

The Money Laundering Secretariat’s ”Indications of eventual money laundering of profit or terrorist

financing” provides information that can help to identify the elements that can be included in the

awareness duty.

6.1 Awareness duty for online casino According to the Executive order on online casino § 29, the casino company is bound by a general

awareness duty.

Management and employees must according to the rules be aware of player activities that, due to

their character, might be related to money laundering or terrorist financing. This especially applies

to cases of:

complex transactions.

unusually large transactions.

all transaction that are extraordinary compared to the player.


22

Transactions that are related to countries or territories where there, according to a FATF

declaration, exists a particular risk of money laundering or terrorist financing (the FATF-

list).

6.1.1 Large transactions

A transaction consists of both insertions on a player account, deposits on games, transmissions

between the player’s own accounts and down payments.

The casino itself assesses, according to a risk based approach, if a transaction is deemed large. The

casino’s general knowledge of the Danish players, their consumption etc. can be used as an

assessment element. FATF has set the amount limits at USD/EUR 3,000, but since the limits are

not implemented in the Act on Gambling, each casino must set a limit on its own. The limit should

be set according to an assessment of what constitutes normal transaction sizes on the account in

question. The limits can therefore vary according to different game types.

Moreover, the limit should also be set based on a risk assessment of how vulnerable the casino is

with regards to money laundering and terrorist financing.

The procedures of the casino concerning large transactions should include:

• Identification of and control with every customer

• Gathering of appropriate additional information to understand the customer’s situation and

business.

Requirements of the gaming system

According to the Danish Gambling Authority’s technical standards, the casino’s gaming system

must give notice or establish a report if a player makes a payment or transaction of for example

DKK 20,000 or more (or the equivalent amount in another currency or currencies).

The gaming system must also be able to analyse suspicious transactions and from that establish

reports to be used in the prevention of money laundering and terrorist financing.

Afterwards the reports must be checked in order to examine whether the transactions are suspicious

and whether the suspicion cannot be denied.

It does not follow from the limit of DKK 20,000 in the technical standards that the individual

casino, based on an assessment of the risk elements, cannot or should not have a lower limit.

Several transactions that sum up to a large transaction

The limit for transactions must be set per customer. This means that if a customer during a

day/period altogether exceeds the limit set by the casino, these transactions must be examined.

An online casino with several websites should use amount limits per customer and not per website.

6.1.2 Unusual and complex transactions

Unusual transactions can be an unusual degree of movement on the player’s account or that an

unusually large amount, compared to the player’s regular use of the accounts, is deposited.


23

Other examples might be:

Changing the player-account

Players often use their private bank accounts when they play online. The players can have different

bank accounts, and they can wish to change which of these account they will use in the casino.

The casino should, when changing the bank accounts, consider updating the costumer ID.

Identity theft

Information on bank accounts can be stolen and unrightfully used on websites. Identity theft can

also be used in relation to opening bank accounts which are subsequently used on websites. It is

useful for the casino to go through IP-numbers in order to prevent that criminal people on the same

computer open several bank accounts based on stolen identities. The casino will be able to see these

risks in the data history (charge back system).

The player’s behaviour

Suspicious behaviour can for example be in the form of players who:

• often play against each other,

• use different payment methods,

• do not wish their prizes to be put on the same card used for deposits,

• carry out huge transactions within a short period of time,

• deposit funds without playing, or

• often use prepaid cards.

Inquiries

Suspicious inquiries from players can concern e.g. questions regarding:

• down payment of funds to other accounts, especially accounts in countries that appear on the

FATF list.

• down payment to accounts belonging to others.

6.1.3 The FATF-list

Awareness duty (and examination duty cf. chapter 8) in relation to other countries and territories

mentioned on the FATF-list means that the casino must be aware of transactions that are connected

to these countries. Regarding countries and territories mentioned on the FATF-list, there is seen to

be a particular risk of money laundering and terrorist financing.

6.2 Awareness duty for land-based casinos According to the Executive order on land-based casinos § 33, the casino management, security

personnel and other employees must be aware of the transactions and exchanges which can be

related to money laundering and terrorist financing.

The awareness duty includes complex or unusually large transactions and all unusual transaction

patterns.


24

A suspicion will normally arise on the basis of an evaluation of the character of the player activities

and the differences that exist compared to normal player activities, concealment and other atypical

player circumstances that altogether bring awareness to a possible attempt of veiling a profit or a

terrorist financing purpose.

Examples of transactions that might be connected to money laundering or terrorist financing are:

Large transactions

On the basis of a risk based approach the casino itself assesses whether a transaction is deemed

large. The casino’s general knowledge of the Danish players, their consumption etc. can be used as

an assessment element.

FATF has set the amount limits at USD/EUR 3,000, but since the limits are not implemented in the

Act on gambling, each casino must set a limit on its own. The limit should also be set based on a

risk-assessment of how vulnerable the casino is with regards to money laundering and terrorist

financing.

The procedures of the casino concerning large transactions should include:

• Identification of and control with every customer

• Gathering of appropriate additional information to understand the customer’s situation and

business.

The player’s behaviour

Suspicious behaviour can for example be in the form of players who:

• place huge amounts in gaming machines, but play for small amounts or not at all,

• have no intention of playing

• safeguard by e.g. playing on both black and white on the roulette,

• often play against each other,

• have a lot of cash

• buy chips without playing

• use different payment methods,

• carry out huge transactions within a short period of time, or

• cash in prizes that do not correspond with the actual prizes.

Video surveillance

In every casino an apparatus must be installed which makes it possible to video monitor all the

transactions of the change box and of all transactions made in relation to games played at tables.

Casinos that have surveillance departments use videotaping media or similar to maintain

registrations of the players’ activities. These surveillance departments should also include

surveillance of potential suspicious transaction reports. For example, the casino can use its

surveillance system for the supervision of players who execute transactions that are unusual or

suspicious.


25

7 Monitoring of players For the casino to be able to estimate whether the transactions or activities are suspicious, the players

must be monitored.

Obtain knowledge of players

By monitoring the casino must obtain knowledge of the individual player and the extent of

gambling, including, if necessary, the origin of the player’s funds.

The monitoring of players and their games are crucial in order to secure an effective use of

guidelines, procedures, internal controls and automatic procedures for the fight against money

laundering and terrorist financing.

All monitoring must be in accordance with the Act on Processing of Personal Data.

Usage of the obtained knowledge

On the basis of the customer knowledge the casino has obtained, the customer relationship and the

player’s transactions must continuously be monitored in order for the casino to keep track of

whether the player acts unusually.

Based on the casino’s own criteria the casino should estimate whether a player constitutes a risk and

estimate the risk factors connected to the individual player.

7.1 Particularly for online casino An online casino has good possibilities to monitor players and obtain knowledge of the player’s

normal behavioural patterns.

Information about the player’s intended extent of gambling

Information about the extent of gambling, stated by the player, must be included in the casino’s on-

going supervision of whether there is a customer relationship or transaction where there is a risk of

money laundering or terrorist financing, including whether the transactions are unusual compared to

the casino’s information about the player.

Changes in the extent of gambling might be suspicious transactions.

Customers with several player accounts

A licence holder can provide games on several websites, and one single website can offer a range of

different types of games. The licence holder must monitor the players’ actions with regards to the

whole casino activity, that means across websites, games etc.

Players may wish to distinguish between the different types of games offered by the same licence

holder. The reason for the distinction may be that the player wishes to monitor performances within

different gambling areas. The casino should implement procedures and systems that can identify the

opening of several accounts and wallets when there is the suspicion that it is taking place for

dishonest reasons. Dishonest reasons include a player trying to hide expenses or trying to avoid

reaching the transaction limit in the casino.


26

7.2 Monitoring on land-based casinos On a land-based casino it is more difficult to monitor a player’s accumulated transactions and

transactional patterns. This places certain demands on the communication between employees etc.

when it comes to obtaining a comprehensive picture of the single player and his movements in the

casino.

For the same reasons the monitoring of land-based casinos should also include:

customer-/staff relationships, especially during busy periods, and

the internal communication in the casino.

The monitoring must moreover be especially focused on whether the employees follow the internal

guidelines.


27

8 Examination and noting duty The casino is obligated to examine the purpose of the activities and transactions that are described

under the section “Examination duty”, and the results hereof must be noted and stored in

accordance with § 29, chapter 2 of the Executive order on online casino and § 33 of the Executive

order on land-based casino.

8.1 Examination duty The aim of the examination duty is to determine whether what looks suspicious will become an

actual suspicion of money laundering or terrorist financing that cannot be denied, or whether a

possible suspicion can be denied. An examination should therefore only take place when there is a

suspicion present. This could be e.g. a case where a transaction does not match the customer’s

normal behavioural pattern.

It is not the intension that the casino should engage in a closer assessment of criminal justice, but

the casino must always try to have the suspicion denied by examining the circumstances more

closely. All suspicious transactions should therefore not automatically be reported.

The starting point of the examination of a suspicion would be to compare the information that the

company has about the customer (information about the purpose with the business and the scope

hereof) and that which looks suspicious.

The casino can contact the customer in order to obtain information about the purpose of the

transaction/activity. A player’s statement can however not be taken for granted, and the player’s

information must therefore be verified by an independent source. This can be done through e.g.

searching in various search engines, reference books or by asking the player to document the

information.

The customer’s explanation will in many circumstances not be enough to be able to deny a

suspicion. It might therefore be relevant to ask the customer to document his explanation.

If the casino estimates that an inquiry will give the customer a clue about the casino being

suspicious and in the midst of doing an investigation, or if the casino does not wish to contact the

customer about the case, the casino must file a report to SEIC if the suspicion cannot be denied in

any other way. For both online and land-based casinos it will often be difficult to execute the

examination duty, why one should notify SEIC.

The casino’s player knowledge can also contribute to having a suspicion denied, e.g. a suspicion

will often be denied if the player is a known poker player who has just won a large amount of

money in a poker tournament. A suspicion can also be denied by obtaining information about the

player. For example, the player’s employment status might indicate how many assets the player has

at his disposal.

Only very seldom will the person who is responsible for notifying be able to identify the actual type

of crime. The general knowledge about customer behaviour and the actual knowledge about the

given customer is therefore normally an indicator of whether the relationship must be examined

more closely.


28

If the suspicion cannot be denied by a closer examination, the casino and management, security

personnel and other employees engaged in the actual casino activity are obligated to notify the State

Prosecutor for Serious Economic and International Crime (SEIC) immediately.

Examination of the origin of funds

By suspicious transactions it can in some cases be necessary that the casino obtains knowledge

about the origin of funds. It can be difficult to find this information as they are not publicly

accessible, and the customer might become aware of the fact that the transaction can be notified to

SEIC. If it is not possible to obtain the information, the transaction should result in SEIC being

notified as the suspicion cannot be denied.

8.2 Noting duty If the transaction is complex or unusually large (compared to the customer), or if the transaction

pattern is unusual (compared to the customer), the casino employee must take note of the incident.

The noting duty includes factual information about the player and the transaction and a conclusion.

The note must be sufficient in order to refresh one’s memory. The starting point will often be the

player’s own explanation of the purpose of the transaction, possibly compared to statements

gathered from colleagues who are in contact with or have tasks related to the player.

The noting can for example include the following:

a) The purpose of the transaction.

b) Correspondence with the player.

c) Account registrations.

d) Information on identification documents.

e) Signed documents of a contracted nature (account creation etc.).

The storage duty also applies even though the examination concludes that the suspicion is denied,

and the State Prosecutor for Serious Economic and International Crime (SEIC) should not be

notified.

The amount of information that should be noted and stored in the individual case depends on the

complexity of the circumstances. Often, it will be enough to store information about the purpose of

the transaction.

In more complex situations the stored information may contain internal deliberations and

assessments. This could be e.g. information about the transaction being deemed legal and not giving

raise to further examinations, or that the transaction on the current basis is not suspicious, but that

enhanced supervision of the transactions that follow must be made. It could also be noted that the

transaction must be examined further, or that the SEIC must be notified.

Notes taken in relation to examinations of suspicious transactions belong to the casino’s internal

work documents, which the player does not have access to.

Since there can be information that is sensitive according to the Act on Processing of Personal Data,

it is recommended that the noted information is only accessible to relevant employees.


29

Documents and registrations concerning transactions must be stored so they can be found

collectively for at least 5 years after the execution of the transaction. See also section 10 on storing

of documentation and registrations.


30

9 Notification When one suspects that a player’s transaction or inquiry has or has had a connection to money

laundering or terrorist financing, the casino must firstly examine the transaction or the activity more

closely.

When a suspicion has first been established, the Danish Money Laundering Secretariat must

immediately be notified unless the casino through its examination seems to be able to reach the

conclusion that the suspicion is no longer present. In other words, the suspicion must be denied, not

only weakened.

A piece of information from a customer that is not supported by documentation or by information

that the casino is otherwise in hold of will typically not be suitable in order to remove a suspicion

when it has arisen.

The requirements of a rebuttal do however not include:

that the casino must set up extensive examinations, engage in investigations or the likes, or

that the casino must always gather documentation from a customer when a suspicion

concerning money laundering has arisen.

This means that the casino should notify the Money Laundering Secretariat when it believes that it

cannot come any further with its investigation within reasonable limits.

When in doubt, you must always notify.

There exists a notification duty even though the transaction will not immediately result in the

proceeds being laundered (also when the transaction has been executed). It is important to note that

the money laundering regulations must contribute to the prevention of crime, including terrorism,

by

limiting the possibility for abusing the casino business for money laundering and terrorist

financing purposes, and

easing the police’s crime investigation.

In order to fulfil the requirement the casino must have internal procedures in place that secure that

the needed notifications are made. On the basis of a risk assessment, the casino must focus on those

areas deemed vulnerable to money laundering and terrorist financing. An effective risk assessment

securing examination of all suspicious acts will make the casino able to report to the State

Prosecutor for Serious Economic and International Crime (SEIC).

It is obligatory to notify the State Prosecutor for Serious Economic and International Crimes

(SEIC). It is not a police reporting.

The notifications will be received by a special unit within SEIC called the Money Laundering

Secretariat. The Money Laundering Secretariat is established with the aim of receiving, analysing

and communicating notifications on possible money laundering of proceeds obtained through

criminal activity or financing of terrorism by the companies and people who are covered by the

Money Laundering Act and the Act on Gambling.

The Money Laundering Secretariat communicates the notifications to e.g. the Danish Tax Authority

(SKAT) and the police.


31

Documents and registrations concerning transactions must be stored, so they can be found

collectively at least 5 years after the execution of the transactions. See also chapter 10 on storing of

documents and registrations.


32

9.1 Notification to the State Prosecutor for Serious Economic and International

Crime Notifications can be sent by e-mail to [email protected]. The e-mail address can receive encrypted mails

that are sent from a PC with a security certificate.

In order to send encrypted e-mails to the State Prosecutor for Serious Economic and International

Crime (SEIC), it is necessary to download the secretariat’s certificate, which can be done on the

following internet addresses:

– http://www.certifikat.dk

– http://www.rigsadvokaten.dk/?id=215

– http://www.politi.dk/da/kontakt/mailadresser_sikre.htm

In urgent cases notification to SEIC can always be made by telephone (+45) 45 15 47 10.

Formal requirements

There are no particular formal requirements regarding the notification. The notification must

include as much information as possible, making it possible for the authorities (police, the Danish

Tax Authority etc.) to continue the case. This means that involved persons and companies must be

identified by name, address and Social Security Number, if possible. Furthermore, the suspicion

must be described, which will normally mean that relevant transactions and eventual account

conditions must be mentioned and relevant annexes must be attached. Hereby it is possible for the

State Prosecutor for Serious Economic and International Crime (SEIC) to see whether there in the

police register or in other public registers is information of relevance to the case. There must also be

enough information on the actual background of the notification in order for SEIC to be able to

decide on the further process.

A notification can be made in both Danish and English.

Who must notify?

The notification does not need to include the name of the employees involved in the examination,

including the person who became suspicious. If there is an actual need to know this, the information

can be obtained afterwards.

It is not always the employee in contact with the player who notifies the State Prosecutor for

Serious Economic and International Crime (SEIC). This function is often carried out by the money

laundering responsible. According to the casino’s business procedures the employee must typically

report the suspicion to the money laundering responsible who afterwards carries out the necessary

examinations of the suspicion and eventual reporting to the State Prosecutor for Serious Economic

and International Crime (SEIC).

If the money laundering responsible does not take part in the examination of the suspicious

transaction, it would be appropriate that the person in question is notified in every single case since

it is the same person who must control that examinations of suspicious transactions are made, that

the results of these examinations are stored and that the State Prosecutor for Serious Economic and

International Crime (SEIC) is notified if the suspicion cannot be denied based on the examination.


33

Confidential information

Passing on player information to the police is not seen as an unjustified transfer of confidential

information. Therefore, information given to the police in good faith will not impose any liability

onto the casino or its employees.

In cases where the purpose of the intervention might be wasted, the police can demand that the

information is handed over immediately and afterwards have their decision tried in court. Therefore,

the obtaining of further information, which due to the rules of confidentiality in other acts cannot be

transferred (e.g. because they contain information on customer relations) or which the casino does

not wish to transfer without a warrant, is done according to the rules of edition or search in the

Danish Administration of Justice Act.

The Danish Gambling Authority’s obligation to notify

The Danish Gambling Authority is obligated to notify the State Prosecutor for Serious Economic

and International Crime (SEIC) if the Danish Gambling Authority becomes aware of circumstances

which can be assumed to have a connection to money laundering or terrorist financing.

9.2 Suspending online casino transactions If one suspect that a player’s transactions or activities have or have had a connection to money

laundering or terrorist financing, an online casino licence holder must set the given transaction on

hold until the State Prosecutor for Serious Economic and International Crime (SEIC) has been

notified. After the notification, the transaction can be completed.

As an exception to the above mentioned, a transaction does not need to be suspended before the

notification of SEIC:

if the completion of the transaction cannot be omitted, or

if the completion of the transaction might hurt the investigation of the case.

The State Prosecutor for Serious Economic and International Crime (SEIC) must in these cases

receive notification immediately after the transaction has been completed.

9.3 Notifying the Danish Gambling Authority Quarterly the casino must send in the following information to the Danish Gambling Authority:

• the number of notifications sent to the State Prosecutor for Serious Economic Crime (SEC),

and

• the number of employees who has received education and instruction programs.


34

10 Storing of documents and registrations Casinos should store all information and documents that might be connected to money laundering

or terrorist financing.

It could for example be the following:

a) The purpose of the transaction.

b) Correspondence with the player.

c) Information on the identification documents.

d) Signed documents of a contracted nature (account creation etc.).

The amount of information that should be noted and stored in the individual case depends on the

complexity of the circumstances. Often it will be enough to store information about the purpose of

the transaction.

In more complex situations the stored information might contain internal deliberations and

evaluations. This could be e.g. information about the transaction being deemed legal and not giving

raise to further examinations or that the transaction on the current basis is not suspicious, but that

enhanced supervision of the following transactions must still be made. It might also be noted that

the transaction must be investigated further or that the State Prosecutor for Serious Economic and

International Crime (SEIC) must be notified.

Notes taken in connection to examinations of suspicious transactions belong to the casino’s internal

work documents which the player does not have access to.

It is not always the employee in contact with the player who notifies the State Prosecutor for

Serious Economic and International Crime (SEIC). This function is often carried out by the money

laundering responsible or a responsible employee. According to the casino’s business procedures

the employee must typically report the suspicion to the money laundering responsible who

afterwards carries out the necessary examinations of the suspicion and the eventual reporting to the

State Prosecutor for Serious Economic and International Crime (SEIC).

If the money laundering responsible does not take part in the examination of the suspicious

transaction, it would be appropriate that the person in question is notified in every single case since

it is the same person who must control that examinations of suspicious transactions are made, that

the results of these examinations are stored and that the State Prosecutor for Serious Economic and

International Crime (SEIC) is notified if the suspicion cannot be denied upon the examination.


35

11 Internal control The casino must develop and implement a framework for internal controls (e.g. guidelines,

procedures and processes) for all the operational divisions and departments which will be using the

internal controls. The internal controls must include all relevant activities and programs such as e.g.

reporting of suspicious activity, reporting of transactions (where it is required), customer

identification and accounting. Internal controls should also include the establishing of accounts,

documentation procedures and supervision which together must be sufficient in order to discover

and report suspicious activity to the State Prosecutor for Serious Economic Crime (SEC).

The control measures, which must be based on a risk assessment, should be described, and the

individual controls should be documented as a starting point.

The casino’s internal controls must be carried out according to:

complexity, organisation and size of the casino,

the risk attached to the different types of games and financial services that are offered, and

the risk attached to the different customer types.

Controls can include:

• Measures that can manage risk players, their transactions, accounts and secure sufficient

supervision and education of personnel.

• Use of appropriate automatized systems and programs.

• Establishing supervisory measures.

• Regular revision and update of the risk assessment.

The casino should carry out independent internal and/or external controls of procedures concerning

money laundering and terrorist financing that take into account the risks facing the casino. The

casino should act if the casino becomes aware of those weaknesses and flaws in their risk-based

money laundering and terrorist financing programs or parts of it that might result in lacking

fulfilment of requirements, reports and accounting.

Control should be carried out with appropriate frequency. The casino should continuously consider

whether the internal control procedures are satisfactory.


36

12 Education and instruction programs The casino must prepare education and instruction programs for its employees. These education and

instruction programs must among other things secure that the employees are informed of the rules

concerning the awareness-, examination -and notification duty in relation to activities which due to

their character can be associated with money laundering or terrorist financing.

The casino must secure that sufficient education and instruction programs for management and

employees are carried out. These programs must be connected to the casino’s written internal rules.

Education and instruction programs must secure that the employees have an adequate knowledge of

the duties that relate to money laundering, including the casino’s procedures for the area, and of the

importance that the requirements have for the individual employee’s work.

The employees must be educated and instructed in accordance with the responsibility that each

casino employee has.

Examples of staff that must be trained is

• the accounting staff,

• the staff in the financial department,

• the staff in the fraud department,

• the staff in the IT department,

• the staff taking care of the big player contact,

• the customer staff,

• the supervisory staff and

• the surveillance staff.

The staff having the responsibility to supervise or approve transactions in connection to gambling

should be included in a more comprehensive training program.

Using a risk based approach in relation to the different methods available for training gives the

casino flexibility when it comes to frequency, implementation mechanisms and education. The

casino should revise its own work force and accessible resources and implement educational

programs that give adequate information on money laundering and terrorist financing, customised

to the employees.

The casino must place demands and secure that employees actually have participated in the program

classes.


37

13 Confidentiality The casino, management and employees must conceal when the State Prosecutor for Serious

Economic and International Crime (SEÌC) has been notified. This is also the case when notification

is considered, or when there is or will be conducted an examination of whether money laundering or

terrorist financing exists.

People who are bound by confidentiality

The following people are bound by the demand of confidentiality:

Licence holders

Employees, including management and other employees engaged with the actual casino

activity

Licence holders and their management and employees and accountants and others, who carry out or

have certain occupations, must keep the following confidential:

• possible notifications of the State Prosecutor for Serious Economic and International Crime

(SEIC) concerning suspicion of money laundering or terrorist financing,

• deliberations on notification, as mentioned above, and

• examination of whether money laundering or terrorist financing is actually taking place.

It is however permitted to forward information to the Danish Gambling Authority concerning:

• eventual notifications to the State Prosecutor for Serious Economic and International Crime

(SEIC) concerning suspicions of money laundering or terrorist financing,

• deliberations on notification, as mentioned above, and

• examination of whether money laundering or terrorist financing is actually taking place.

The information can be forwarded in order for the Danish Gambling Authority to use it in relation

to the monitoring of licence holders. The Danish Gambling Authority cannot assess whether one, in

the given case, must notify the State Prosecutor for Serious Economic and International Crime

(SEIC).

Information covered by confidentiality

Confidentiality covers information about

• the notifications being made,

• deliberations on whether to notify, and/or

• the existence or establishment of examinations of whether money laundering or terrorist

financing is taking place.

Confidentiality only covers this type of information. If a licence holder or an employee suspects that

an employee in another casino launders moneys from e.g. embezzlement, the regulations do not

prevent the licence holder from informing the casino of the suspicion. The licence holder will

however not be able to inform the casino that the State Prosecutor for Serious Economic and

International Crime (SEIC) has been notified. In connection to the notification the licence holder

must however observe the confidentiality regulations that apply according to other legislations.

Confidentiality deadline


38

Confidentiality is not covered by any deadline and therefore also applies after a person’s connection

to a casino has ceased.

Protection of employees

The licence holder must take appropriate action in order to protect employees who notify or are

involved in the notification of suspicious transactions internally or to the State Prosecutor for

Serious Economic and International Crime (SEIC) in order to protect them from threats or reprisals.


39

14 Penalty clauses Intentional or grossly negligent breach of regulations of the Executive order on online casino and

Executive order on land-based casinos can be punished by fines.

Intentional or grossly negligent breach of unjustified transfer of information received from the State

Prosecutor for Serious Economic and International Crime (SEIC) will be punished by fines, unless a

more severe punishment is prescribed by the regulations of the Criminal Code.

If it can be concluded that a licence holder or employees have intentionally contributed to money

laundering, the person in question can be punished for handling according to the Criminal Code §

290. If the person in question has assisted the financing of terrorism, he can be punished according

to the Criminal Code § 114 b, section. 1, nr. 3 on assisting terrorist financing.

It is possible to sentence someone to jail in up to 6 months when particularly gross or extensive

breaches of the regulations of notification duty, identification or storage of identification - or

transaction information have taken place.

In relation to the above-mentioned, see § 60 in Act on Gambling and § 37 in the Executive order on

online casino.