Inpay Hit With iGaming AML Restriction in Denmark

Danish payments company Inpay A/S has been barred from entering new agreements with iGaming businesses after Denmark’s financial regulator identified significant weaknesses in its anti-money laundering controls.

Finanstilsynet introduced the restriction following an inspection of Inpay’s procedures in March. The measure will remain in place until the company can demonstrate that the identified issues have been properly resolved.

The action has placed greater attention on Inpay’s work with online gambling companies, a sector viewed by the regulator as particularly vulnerable to money laundering risks.

AML Weaknesses Found Across iGaming Customers

Finanstilsynet identified deficiencies in Inpay’s customer due diligence processes. In certain cases, the company was unable to demonstrate that it had adequately established the reason for a business relationship or understood its intended purpose.

The regulator also identified weaknesses in Inpay’s assessments of customers regarded as presenting higher risks of money laundering and terrorist financing.

According to the findings, the problems were not confined to a single customer. Finanstilsynet determined that the deficiencies affected most of Inpay’s iGaming customer portfolio.

The regulator highlighted the nature of these customers, complicated ownership structures and activities across multiple countries as factors that increased the seriousness of the shortcomings.

Inpay has agreed to stop entering new iGaming relationships while it addresses the issues. Before the restriction can be removed, the company must submit documentation to Finanstilsynet showing that its AML controls have been improved.

The regulatory findings also concern existing customer relationships, indicating that the weaknesses extended to the way Inpay understood and evaluated customers already within its business.

Inpay Faces Increased AML Scrutiny

Inpay operates as an electronic money institution under Denmark’s Payments Act and specialises in international payments, providing an alternative to conventional SWIFT transfers.

The company serves businesses operating across different markets, connecting them with the wider financial system as transactions move between jurisdictions.

Its customers include corporate businesses, financial institutions and crypto companies in addition to gambling operators. However, the regulator has placed particular emphasis on its iGaming exposure because of the sector’s elevated money laundering risks.

For Inpay, the immediate impact is a halt on new iGaming agreements until Finanstilsynet is satisfied that the identified deficiencies have been addressed.

The regulator has not ordered a broader suspension of Inpay’s payment activities. Instead, the measure is specifically focused on new business relationships with online gaming companies, leaving the company’s remediation efforts central to any future expansion in the sector.