Sweden’s gambling inspectorate to increase financial penalties for AML violations
Sweden’s gambling regulator, Spelinspektionen, will be able to impose higher financial penalties on gambling operators who violate anti-money laundering (AML) rules, thanks to recent changes to Sweden’s Money Laundering Act. The decision, approved by Sweden’s Ministry of Finance, will take effect from April 1, 2024.
Stronger regulation and consumer protection
Spelinspektionen had proposed amending the Money Laundering Act to enhance consumer protections and combat crime within the gaming industry. With the new changes, the inspectorate will have the authority to impose the same penalty fees for AML infringements as those under the Gambling Act of 2018, with a specified maximum amount for individual violations.
Director General Camilla Rosenberg expressed her support for the decision, stating, “We welcome the proposals that strengthen the regulation of the gaming market. It is also great that the government has raised the sanction ceiling for violations of the Money Laundering Act.”
Addressing limitations in enforcement
Previously, the gambling inspectorate’s enforcement capabilities for AML violations were limited as they could only apply “modified penalties” to offenders. These penalties were considered insufficient to address serious financial violations. Disputes over AML penalty fees prompted the Ministry of Finance to intervene, leading to the recommendation that the inspectorate develops a new framework for AML penalties in collaboration with Sweden’s Consumer Agency.
Aligned penalties and increased operator responsibilities
Starting from April 2024, the penalty fees for Money Laundering Act violations will align with those for breaches of the Gambling Act. Swedish licensed operators will also have the ability to access a customer’s personal financial and public health data, enabling intervention in potential problem gaming situations or suspected money laundering activities.
Sweden, gambling inspectorate, financial penalties, AML violations, Money Laundering Act, consumer protection.