Sweden’s Regulator Demands More Action in Anti-Money Laundering Efforts

Spelinspektionen, the iGaming regulator in Sweden, has published a brand-new guide on money laundering policies to all of their licensees. The Inspectorate has also made some of its observations on current anti-money laundering actions known.

The regulator has observed that asg customers a risk level when they set up an is one of the most important novel areas.

New Measures

According to Spelinspektionen…

…numerous operators have so far failed to establish these risk levels and this makes it hard to detect customer behavior that can be deemed unusual.

One thing that could help inform and define these risk levels are the average household spending figures in Sweden.

They have also noted that one sign of risk is when a customer significantly increases their deposits or stakes. A player’s risk classification can be raised when that happens. Further measures should be taken when a player is already in the category of high risk.

Verification of player’s source of funds should be proportionate to their risk level.

Quick Reporting is Vital

In their report, Spellinspektionen noted:

“For example, data on taxable income may be appropriate to collect for a normal-risk player while further verifications and direct with the customer are required to find out where the client’s money comes from if they are high-risk.”

One effective way to reduce the money-laundering or terrorism financing risk is by allowing closed-loop transactions, meaning that customer is the only person why may withdraw from the from which the deposit was made.

Spelinspektionen has also reminded operators of their obligations under the Money Laundering Act. These include conducting risk assessments and performing identity checks as well as reporting unusual behavior.

Suspicious activities must be reported to the Financial Police and provide information regarding any business relationships with the customers in the past five years.

The report further reads:

“A report to the Financial Police does not require the gaming company to have evidence that money laundering or terrorist financing has actually happened. It is enough that the company has reasonable grounds to suspect that the money comes from criminal activities.”

Source:

“Spelinspektionen calls for greater AML risk awareness”, igamoingbusiness.com, July 1st 2020