Date: 14.01.2025

by Adam Dworak

Danish Gambling Regulator Warns of Money Laundering Risks in Affiliate Agreements

The Danish gambling regulator has highlighted potential money laundering risks linked to affiliate agreements. Operators are urged to reassess their anti-money laundering strategies and monitor affiliate activities closely to prevent misuse by organized criminal networks.

Affiliates as a Potential Money Laundering Channel

Spillemyndigheden’s recent statement emphasizes that affiliates who market gambling operators may inadvertently or deliberately enable money laundering activities.

The regulator identifies a specific red flag: a high volume of affiliate referrals who use a gambling operator’s website only once. Such activity could indicate attempts to channel illegal funds.

Organized Networks Exploiting Affiliate Agreements

According to the regulator, affiliate agreements can be vulnerable to exploitation by organized criminal groups.

These networks may refer numerous individuals within their structure to a gambling operator, depositing illicit funds across multiple accounts.

By distributing the deposits, the transactions appear less suspicious. After minimal activity, these funds can be withdrawn, completing the money laundering process.

“Gambling operators that use affiliates should therefore consider whether this gives rise to updating their risk assessment,” Spillemyndigheden stated, reinforcing the importance of addressing potential vulnerabilities.

Recommendations for Gambling Operators

To mitigate these risks, Spillemyndigheden advises gambling operators to reassess their affiliate agreements as part of their AML risk evaluations.

Additionally, any suspicious activities should be promptly reported to the Financial Intelligence Unit.