Licensed iGaming in Sweden have once again been warned to strictly comply with their anti-money laundering obligations or face sanctions. The Kansspelautoriteit(KSA), the country’s gambling regulator, issued the warning after it found that two companies had allowed some of their players to deposit and lose huge amounts of money during a short period of time.
Two Operators Flagged for Potential AML Breaches
The regulator said the two firms failed to carry out any intervention or investigation needed to prevent players from engaging in criminal practices while gambling. The KSA reiterated that operators should monitor the gambling activities of their players and take immediate action when unusual behavior is identified.
For instance, operators must quickly intervene and investigate if a customer suddenly deposits high amounts even if the money comes from their bank account. A similar investigation is required if match-fixing is suspected, the KSA said.
KSA To Impose Sanctions if Failings Continue
According to the regulator, numerous online operators do not conduct sufficient money laundering checks and are only prompted to investigate when deposits go “much higher” than €2,500. The KSA said problem gamblers usually resort to criminal activities to fund their gambling addiction which is why operators must be responsible enough to conduct earlier research.
The regulator also reminded online gambling companies of their obligation to observe transparency in reporting transactions, including deposits amounting to €15,000 made within 24 hours.
The KSA said it is continuing to investigate the two operators and warned of possible sanctions if further violations are found.