Gambling Operators Must Be Vigilant Against Money Laundering

The Swedish Gambling Authority emphasizes the importance of license holders being proactive in detecting and preventing money laundering and terrorist financing.

Proactive Approach Required

According to regulations, gambling operators must be vigilant about answering customer due diligence questions and providing documentation to prove the origin of funds. This is crucial to prevent illegal activities such as money laundering and terrorist financing.

Customer Due Diligence

Customers who set higher deposit limits than €2,000 or gamble more than €2,000 within a rolling 12-month period can be considered normal risk. However, if there is no indication that the customer should be classified as high-risk, they must still be monitored closely.

• Customers with lower deposit limits (less than €2,000 over a rolling 12-month period) are considered low-risk.
• Gambling operators must remain vigilant about high deposit limits and ensure that gambling does not escalate rapidly.

Ongoing Monitoring Crucial

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 the risk associated with the customer.
• Detecting deviant transactions and activities to prevent money laundering or terrorist financing.

Reporting Suspicious Transactions

Under the Money Laundering Act, gambling operators are obligated to review and report suspicious transactions to the Financial Police. If suspicion remains after analysis, the report must be made promptly. It is prohibited to inform customers or third parties that a report has been made.

Internal Control and Whistleblowing

The authority emphasizes the importance of internal control and whistleblowing systems. License holders must:

• Appoint specially designated officers (e.g., anti-money laundering officers).
• Establish independent audit functions.
• Ensure employees and contractors can report internally if the license holder breaches anti-money laundering rules.

Conclusion

Gambling operators in Sweden must be proactive in detecting and preventing money laundering and terrorist financing. By being vigilant about customer due diligence, monitoring business relationships, reporting suspicious transactions, and implementing internal controls and whistleblowing systems, they can ensure compliance with regulations and protect their reputation.