The Swedish Gaming Body Spelinspektionen has now issued a new information guide for the license holders on Anti-Money Laundering. It has also published some observations on operators on the current money laundering.
Spelinspektionen mentioned that the operators must assign a risk level to the customers who are setting up their accounts as part of the AML process. The body said that many of the operators have failed to establish the risk levels. The body observed that this makes it difficult to recognize the customer behavior. It also provided guidelines that average household spending of Sweden should help the operators to identify the risk levels.
The gaming body observed that when a customer significantly increases the deposits or stakes is the first sign of risk. The body urges the risk classification of the players in such cases. In case the players are under the high-risk category, further measures should be taken said Spelinspektionen. It also urged the operators to take immediate action rather than waiting for withdrawals from customers. It also said that the source of funds for the players should be in proportion to the risk levels.
Explaining the process, Spelinspektionen, said that for normal players data of normal taxable income is sufficient.
However, for high-risk players, further queries are required to find out the source.
The regulator also said that the only way of stopping anti-money laundering and terrorist financing is possible by closed-loop transactions.
Spelinspektionen also reminded the operators that they have obligations under the Money Laundering Act. Risk Assessment Completion, identity checks for players, and reporting suspicious transactions are few of the measures, it said. It also said that the operators must report quickly and immediately any suspicious activity to the Financial Police and must provide the business relationship and information if requested.
A report does not really need evidence that money laundering has actually happened. It is just to provide input that the company has enough ground to be suspicious about some activity. Spelinspektionen also added that games like poker which allow peer to peer transaction also has risks, as the transaction can be made from one person to another.
Spelinspektionen has been very strict on the Money laundering act. It even revoked the operating license of the Global Gaming in June 2019 sighting serious deficiencies. It included failures to protect responsible gambling and Money Laundering.
Spelinspektionen also revealed that many of the operators have failed to develop any comprehensive plan to prevent and deal with problem gambling. This came after a survey was conducted on the operator’s duty. The survey said that some operators could not mention the indicators used to monitor gambling activity and few did not mention contacting players who had previously self-excluded themselves.