Betsson one of three companies fined in Sweden for AML failings
Spelinspektionen’s Active Oversight: Betsson and Others Face AML Sanctions
In a significant regulatory move, Betsson Nordic Ltd has received a formal warning and a fine of SEK 6.5 million (approximately $682,272) from Spelinspektionen for lapses in its anti-money laundering (AML) protocols in Sweden.
Following a thorough review initiated on May 2, 2024, Spelinspektionen scrutinized Betsson’s transactions and operations throughout 2023. The regulator focused on a selective group of ten customers sourced from the top fifty individuals, aged 18 to 29, who had made the largest total deposits during the period.
Upon examination of the customer cards and transaction logs for these selected players, only two were found to be compliant with AML standards. The remaining eight cases revealed concerning deficiencies.
One notable case involved a customer who conducted 163 deposits from September 19 to December 30, 2023, totaling SEK 491,950. Despite having a net annual income of SEK 310,000, the customer’s risk assessment was categorized as low to medium. This disparity raised red flags for Spelinspektionen.
The regulator pointed out that Betsson justified these significant deposits on the basis of the customer’s prior winnings, indicating a systematic failure in assessing the actual risk posed by high-volume transactions.
“The Swedish Gambling Authority has identified these deficiencies as both serious and systemic,” remarked Spelinspektionen. “Considering the company’s financial standing, the imposed sanction fee of SEK 6.5 million is deemed appropriate in light of the severity of the violations.”
Additional Fines for Snabbare and Flutter’s TSG
In conjunction with Betsson, two other operators—Snabbare Ltd and The Stars Group (TSG) Interactive—faced penalties from Spelinspektionen due to similar AML infractions. Flutter Entertainment’s TSG was fined SEK 7 million, while Snabbare received a sanction of SEK 5.5 million.
TSG was found to have allowed several customers to surpass net deposits of SEK 424,514 over a 365-day timeframe without implementing the necessary enhanced due diligence measures to ascertain the source of funds.
According to Spelinspektionen’s findings, “TSG has failed to carry out sufficient customer due diligence regarding the audited customers, and has not taken timely enhanced measures, thereby increasing its exposure to potential money laundering activities.”
Snabbare faced similar scrutiny, with the regulator highlighting that the operator had accepted deposit amounts that exceeded customers’ annual incomes, demonstrating a deficiency in customer risk assessment practices. This negligence was perceived as an invitation for exploitation in money laundering schemes.
Spelinspektionen characterized the failings of all three operators as “serious and systemic,” culminating in a collective fine of SEK 19 million.
Increased Vigilance: Spelinspektionen’s Regulatory Agenda
The scrutiny does not stop here. Recently, Spelinspektionen has also imposed fines on various charitable and political organizations operating lottery services for failing to oversee their contractors and for marketing infractions.
This included fines of SEK 3 million levied against the Swedish Social Democratic Workers’ Party and its affiliated youth and women’s leagues.
Earlier in May, Kindred’s subsidiary Spooniker was fined SEK 10 million for AML shortcomings, while Videoslots was sanctioned with a SEK 12 million penalty in April for inadequate measures to address problem gambling.
As regulatory expectations intensify within the gambling sector, operators must prioritize robust compliance frameworks to ensure adherence to AML regulations and protect the integrity of the market.
