Danish Gambling Authority stresses FATF's updated high-risk jurisdictions

Denmark’s Gambling Authority, Spillemyndigheden, has drawn attention to the latest updates from the Financial Action Task Force (FATF) on high-risk jurisdictions, reinforcing the importance of compliance with global anti-money laundering (AML) and counter-financing of terrorism (CFT) measures.  

 The FATF’s updated lists classify jurisdictions based on their AML/CFT compliance.  

- Grey List: Includes countries under increased monitoring for weaknesses in their frameworks. A notable addition to this list is Lebanon, alongside Algeria, Angola, Bulgaria, Burkina Faso, Cameroon, the Ivory Coast, Croatia, DR Congo, Haiti, Kenya, Mali, Monaco, Mozambique, Namibia, Nigeria, the Philippines, South Africa, South Sudan, Syria, Tanzania, Venezuela, Vietnam and Yemen. 

- Black List: Features countries deemed non-compliant with global initiatives, including North Korea, Iran, and Myanmar.  

The Danish Gambling Authority highlighted that operators must incorporate these lists into their player risk assessments to mitigate potential exposure to financial crime.  

Under Denmark’s AML Act, gambling operators must apply Enhanced Due Diligence (EDD) for players from jurisdictions designated as high-risk by the EU Regulation of High-Risk Third Countries.  

- EDD involves detailed risk assessments, monitoring of transactions, and reporting suspicious activities.  
- However, players from countries on the FATF’s Grey List alone do not automatically require EDD unless listed in the EU Regulation.  

The Gambling Authority underscored the critical role of FATF compliance in protecting the gambling sector from being exploited for money laundering or terrorist financing.

- Denmark’s gambling market has seen a nearly 3% drop in consumer spending, reflecting increased regulatory pressures and growing awareness of financial crime risks.  
- Adhering to FATF standards supports a secure gambling environment and safeguards industry reputation, according to Spillemyndigheden.  

Founded in 1989 to combat money laundering, FATF expanded its remit in 2001 to include terrorism financing. It regularly updates its high-risk jurisdiction lists to bolster global financial integrity.  

The latest updates serve as a reminder for operators to maintain vigilance and adhere to Denmark’s AML framework, ensuring alignment with international standards.