Swedish financial watchdog fines Trustly for AML breach

Finansinspektionen has fined the online payments service SEK130m (€12.2m) for breaching anti-money laundering regulations.

Sweden.- The Swedish financial authority Finansinspektionen has fined the online payments service Trustly SEK130m (€12.2m) after finding that it had breached both the authority’s regulations and Sweden’s Anti-Money Laundering Act.

The agency identified failures in risk assessment procedures, customer due diligence, monitoring and reporting. It said Trustly had failed to apply measures to a “large portion” of customers, failing to carry out risk assessments and monitoring.

Finansinspektionen said that the company operated in an “industry associated with a high risk of money laundering and terrorist financing“ and that its positions could “almost be described as a hub between banks and gambling operators.”

For violation of its own rules, it issued a SEK130m fine and a warning. It ruled that breaches of the AML Act were not as serious.

Erik Thedéen, director general of Finansinspektionen, said: “Trustly’s role in the payment chain between the gambling industry and a large number of banks makes it possible for the company to see flows that are not available to other market participants. 

“A company that has chosen fast and simple as its business concept in the gambling industry needs to be very thorough in working to prevent money laundering. Our investigation has identified that this has not been the case.”

Trustly has announced 120 redundancies as part of a restructuring. It’s not clear how many will come in its gaming department.

Earlier this month, in neighbouring Denmark, the national gambling regulator warned Kindred’s Unibet over a series of AML breaches.

See also: Swedish gambling regulator launches ad campaign against illegal gambling