Gambling Operators Must Be Vigilant Against Money Laundering, Swedish Authority Warns
In an effort to combat the growing threat of money laundering and terrorist financing in the gambling industry, Sweden’s Gaming Authority has issued new guidelines emphasizing the importance of due diligence and transparency.
Red Flags for Potential Money Laundering Activities
According to the authority’s regulations, gambling operators must be vigilant about customers who exhibit reluctance to answer customer due diligence questions or fail to provide documentation proving the origin of their funds. This is a critical red flag that can indicate potential money laundering activities.
Risk Indicators and Scrutiny
The Gaming Authority has outlined specific risk indicators that may warrant closer scrutiny by license holders:
- Customers who deposit more than €2,000 in a single transaction
- Customers who exceed a total of €4,000 over a rolling 12-month period
- Customers who make deposits totaling less than €2,000 over the same period
Continuous Monitoring and Reporting Obligations
However, the authority stresses that even seemingly low-risk customers must not be taken at face value. License holders must continuously monitor their business relationships and transactions to detect any deviations from expected norms.
In cases where suspicious transactions are identified, operators must report them promptly to the Financial Police without delay. The Gaming Authority emphasizes that no evidence of actual money laundering or terrorist financing is required to trigger a reporting obligation.
Internal Controls and Whistleblower Systems
To prevent breaches of anti-money laundering regulations, gambling operators must implement:
- Specially designated officers
- Central function managers
- Independent audit functions
Whistleblowers within the organization can report suspected breaches anonymously through a dedicated channel, ensuring that concerns are investigated and addressed promptly.
Commitment to Prevention
The Gaming Authority has reiterated its commitment to preventing money laundering and terrorist financing in the gambling industry, emphasizing the importance of cooperation and transparency among license holders. By working together, the authority aims to create a safer and more responsible gaming environment for all stakeholders.