In Sweden and the Spelinspektionen regulator has announced the release of new guidance that has been designed to help locally-licensed iGaming operators more effective counter money laundering and terrorist financing.
The watchdog used an official press release to declare that the fresh advice was formulated following requests from iGaming firms offering their services to those in Scandinavia’s largest nation and is based upon ‘previous supervisory experiences’. The organization pronounced that the guidance also encompasses ‘things that are relevant to other licensees’ while providing an overview of firms’ obligations when it comes to ‘money laundering regulations’.
The new advice (pdf) from the Spelinspektionen explained that locally-licensed iGaming operators must carry out risk assessments of their operations while following internal procedures based on the outcome of these appraisals. The regulator moreover disclosed that firms must regularly review and update these systems in keeping with the country’s Money Laundering Act and target their efforts towards business areas at greatest risk of being utilized for monetary laundering and terrorist financing.
The Spelinspektionen furthermore advised firms to formulate internal procedures and routines regarding money laundering including measures involving customer awareness, monitoring and reporting. The watchdog additionally instructed operators to ensure that their staff are made aware of licensee guidelines and practises while simultaneously incorporating this education into their general risk assessment and training regimes.
In the field of know-your-customer and the advice from the Spelinspektionen explains that operators must be able to electronically verify the identity of their customers by collecting ‘relevant information’. The regulator affirmed that such actions will allow firms to better assess the risks to individual punters, detect deviations and more effectively intervene.
The new guidelines from the Spelinspektionen suggest that players who deposit less than €2,000 ($2,340) over the course of twelve months be considered at ‘low risk’ or money laundering and terrorist financing. However, the advice implores operators to take action should a customer go beyond this threshold and make abnormally large transactions, refuse to submit source-of-funds documentation, become unresponsive or exhibit warning signs such as irrational or unusual gameplay.
The regulator’s advice states that online casino and sportsbetting operators must furthermore adhere to the tenets of Sweden’s Money Laundering Act by collecting identification information as well as proof-of-funds documents. The Spelinspektionen indicated that all of this is buttressed by an obligation for such companies to review all suspicious financial transactions and pass on any unresolved cases to the country’s Financial Police.
Camilla Rosenberg (pictured) serves as the Chief Executive Officer for the Spelinspektionen and she used the press release to proclaim that her organization moreover intends to hold digital seminars ‘to further increase compliance with the rules’. She asserted that these events held in cooperation with the national police service are to be open to all iGaming operators licensed to offer their services in Sweden.
Read a statement from Rosenberg…
“The gaming industry is a risk area for money laundering and we have seen a need for clarification and guidance in this area. This guide will lead to an increased understanding of what is expected of licensees in the Swedish market.”