Danish Gambling Authority Makes Updates to Grey and Black Lists with High-Risk Jurisdictions

In a move to strengthen anti-money laundering (AML) efforts within the gambling industry, the Danish Gambling Authority has recently emphasized the importance of adhering to the Financial Action Task Force's (FATF) updated lists of high-risk jurisdictions.

The Grey List, comprising jurisdictions under increased monitoring, and the Black List, signifying jurisdictions requiring immediate action, have undergone revisions, prompting the DGA to implement crucial updates.

New High-Risk Jurisdictions

Casino operators in Denmark are now mandated to include FATF's lists of high-risk jurisdictions when assessing the risk associated with their players. This development underscores the regulatory body's commitment to maintaining the integrity of the gambling sector and preventing illicit activities such as money laundering and terrorist financing.

The Grey List now encompasses the following jurisdictions: Bulgaria, Burkina Faso, Cameroon, Croatia, DR Congo, Haiti, Jamaica, Kenya, Mali, Mozambique, Namibia, Nigeria, Philippines, Senegal, South Africa, South Sudan, Syria, Tanzania, Türkiye, Vietnam, and Yemen.

Meanwhile, the Black List comprises the Democratic People’s Republic of Korea, Iran, and Myanmar.

Notably, individuals and entities, including gambling operators, are obligated to conduct enhanced customer due diligence (EDD) under section 17(1) of the Danish AML Act. This requirement is triggered when a player is assessed to pose a higher risk of the gambling operator being exploited for money laundering or terrorist financing.

The risk assessment conducted by gambling operators should consider various factors, as outlined in Annex 3 to the AML Act. This includes reference to the FATF high-risk country lists, commonly known as the black list and grey list. While being listed on one of FATF's high-risk lists doesn't inherently mandate EDD, it serves as a crucial risk factor for operators to consider.

This approach differs from players hailing from jurisdictions listed in the EU Regulation of High-Risk Third Country list pursuant to section 17(2) of the AML Act.

The Danish Gambling Authority's proactive stance in aligning its regulatory framework with international standards reflects a commitment to a robust and transparent gambling environment.

By incorporating FATF's high-risk jurisdiction lists into their risk assessment processes, gambling operators in Denmark are better equipped to identify and mitigate potential risks associated with players from these regions.

Dedication to Regulatory Measures

The dynamic nature of global finance and the gambling industry necessitates constant vigilance, and the response of Danish Gambling Authority to the FATF updates also showcases a dedication to adapting regulatory measures to address emerging challenges.

As the gambling landscape evolves, collaboration between regulatory bodies and international organizations becomes increasingly crucial to uphold the integrity and security of the industry.

However, on March 5^th 2024, the Danish Maritime and Commercial Court rejected a player’s claim to be paid an amount that was in their gaming accounts at the time of the bankruptcy of DK Gambling.

The company went bankrupt in April 2022.

Source:

“Update to the FATF’s list of high-risk jurisdictions”, spillemyndigheden.dk, March 7^th, 2024.