Sweden’s gambling regulator, the Spelinspektionen, has issued a penalty fee to Videoslots. According to the authority, the gambling operator failed to properly measure risk and committed anti-money laundering (AML) and counter-terrorist financing (CTF) violations.
For reference, Videoslots is a licensed operator that offers gambling in Sweden through its videoslots.com website.
As noted by the Spelinspektionen, the authority began supervising the operator’s AML protocols back in 2021 as it wanted to confirm whether the company secured sufficient knowledge of its customers. However, the review uncovered failings, confirming the regulators’ suspicions that Videoslots doesn’t properly assess its customers’ risk profiles.
The violations committed by Videoslots are considered to be very serious, the Spelinspektionen noted. According to the regulator, Videoslots has now received a warning and a penalty fee of SEK 9 million (approximately $809,300) for its breaches, which may have facilitated money laundering and terrorism financing.
This is one of the bigger fines handed by the Spelinspektionen, which noted that the maximum possible fine, as outlined in the Money Laundering Act, is EUR 1 million (approximately $1.06 million).
Sweden Is Stepping Up Its Efforts to Combat Illegal Gambling
In other news, the Spelinspektionen just published a partial report on the ongoing review of how collaboration with the Finansinspektionen (Financial Supervisory Authority) can strengthen the efforts against illegal gambling. The two regulatory bodies are currently evaluating how their efforts can benefit Sweden’s online gambling market.
As a result, the Spelinspektionen and the Finansinspektionen are exploring synergies and opportunities for payment blocking. The two regulators are also exploring opportunities for data sharing that will enhance their efforts.
An earlier proposal suggested allocating more money to the two authorities, helping them in their respective tasks. The proposal sought to allocate SEK 10.8 million (around $970,000) to the Spelinspektionen’s 2024 budget and SEK 4.5 million ($400,000) to the Finansinspektionen in 2024.
Over a month ago, Sweden proposed changes to its Money Laundering Act. Back then, the Spelinspektionen expressed its approval for most of the proposed changes but highlighted a few things that could be better. The Swedish Trade Association for Online Gambling (BOS) also addressed the changes and similarly agreed with most of them but outlined a number of things to keep in mind.