Sweden plans changes to calculation of AML fines against gambling operators
The Ministry of Finance intends to equalise fines across different sectors.
Sweden.- The Swedish Ministry of Finance has announced plans to change to the Money Laundering Act to equalise penalties across high-risk Swedish industries. The changes will mean that AML violations must be treated equally from April 1, 2024. The move will increase the size of any penalties against Swedish gambling operators.
The gambling trade association Branschföreningen för Onlinespel (BOS) has welcomed plans to equalise AML fines across sectors in Sweden provided that gambling revenue specifics are recognised. Its response comes as the Ministry of Finance said it hoped the move would resolve legal disputes over the Swedish gambling regulator Spelinspektionen’s issuing of “proportionate fines” for AML infringements.
Licensees including Genesis Global and AB TRAV have challenged Spelinspektionen’s calculation of fees based on turnover instead of GGR. The Gambling Act stipulates that fines can be up to twice the profit made from the violations, but penalty violations related to AML are treated differently than standard violations.
BOS secretary general Gustaf Hoffstedt said: “There is no reason to downgrade AML violations along with other violations. On the contrary, these are among the most serious violations that can occur in the gambling market.
“BOS cannot emphasise enough the importance that penalties for AML breaches, like breaches of the Gambling Act, should be based on so-called GGR (gross gaming revenue), i.e. what remains in money after winnings have been paid out to the gambling consumers. This is also something that is emphasised in the Ministry of Finance’s memorandum, which we welcome.”
