Gambling Operators Must Be Vigilant Against Money Laundering
In Sweden, gambling operators are required to be proactive in detecting and preventing money laundering and terrorist financing. The Swedish Gambling Authority emphasizes the importance of due diligence in customer transactions, as outlined in regulations (SIFS 2019:2).
Indications of High Risk
Gambling operators must take note of customers who exhibit high-risk behavior, such as:
- Setting high deposit limits
- Engaging in excessive gambling activities over a rolling 12-month period
In these cases, operators are required to request information on the origin of funds and take appropriate measures to address the risk.
Indications of Low Risk
On the other hand, customers who make deposits totaling less than EUR 2,000 over a rolling 12-month period are considered low-risk. However, operators must remain vigilant for high deposit limits and rapid escalation of gambling activities.
Ongoing Monitoring
The authority stresses the importance of continuous monitoring of business relationships with customers. This includes:
- Ensuring customer due diligence is up to date, accurate, and sufficient to justify associated risk
- Detecting deviant transactions and activities to prevent money laundering or terrorist financing
Reporting Suspicious Transactions
Under the Money Laundering Act, operators are obligated to review and report suspicious transactions to the Financial Police. No evidence of actual money laundering or terrorist financing is necessary.
Internal Control and Whistleblowing
The authority also emphasizes the importance of:
- Appointing specially designated officers, central function managers, and independent audit functions to ensure compliance with anti-money laundering regulations
- Establishing a whistleblower system that allows employees and contractors to report breaches internally
Conclusion
In conclusion, gambling operators in Sweden must be proactive in detecting and preventing money laundering and terrorist financing. By following the guidelines set out by the Swedish Gambling Authority, operators can ensure compliance with anti-money laundering regulations and maintain a safe and secure environment for customers.