Swedish government-owned casino fined for AML failures

Shirley Pulis Xerxen December 20, 2023

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Swedish government-owned casino fined for AML failures

Spelinspektionen, the Swedish Gambling Authority (SGA), has issued a warning and a penalty fee of SEK 2 million (approximately $196,800) to Casino Cosmopol, a subsidiary of government-owned Svenska Spel.

Following a comprehensive investigation, the SGA concluded that Casino Cosmopol had violated anti-money laundering (AML) and terrorist financing policies. Out of the top 100 players, the authority specifically highlighted eight cases that exemplified the casino’s shortcomings.

Cases highlighted by SGA

Player with dubious financial profile: One player, a frequent visitor since November 2011, played with SEK 45,000 multiple times a week, despite claiming a monthly income of only SEK 30,000. The money used for gambling was taken from loans, but the casino took no action.

Voluntary suspension ignored: Another customer, after ending their voluntary suspension, played twice a week, spending up to SEK 50,000 each visit with a monthly income of only SEK 30,000. The operator accepted the use of loans for gambling.

Unemployed player with high stakes: A third customer, unemployed but claiming an average income of over SEK 100,000 per month, played using SEK 45,000 each visit.

Questionable corporate ties: Another customer with an aggregate loss of SEK 1.1 million made regular cash withdrawals. The customer’s company made share dividends toward Casino Cosmopol, and the customer had ties to the auditing company involved.

Previous AML failures, regulatory history

This recent penalty follows the SGA‘s monitoring of Casino Cosmopol’s AML and terrorist financing policies since November 2021. Notably, in 2018, the casino was fined SEK 8 million for AML shortcomings, a fine that was later reduced.

The regulator highlighted various issues, including misclassifying customers as low risk when they should have been considered high risk and allowing some players to exceed their agreed-upon gambling limits.

Svenska Spel, the parent company of Casino Cosmopol, acknowledged the improvements noted by the regulator, emphasizing enhanced tools and routines to combat money laundering.

Leadership Changes at Svenska Spel

As part of its ongoing efforts, Svenska Spel has appointed Anna Johnson as CEO, succeeding Patrik Hofbauer. Johnson, currently the Swedish chief executive of accounting firm Grant Thornton, will assume her role by June 2024.

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