Money Laundering on Rise – Spelinspektionen’s Case of Strengthening Guidelines

Spelinspektionen, a regulatory body for gambling in Sweden, has fortified its guidelines for anti-money laundering and counter-terrorist financing. These guidelines will strengthen AML compliance requirements for online gambling operators.

The reason behind the revisions of guidelines is actually a response to the massive increase in suspicious activity (SAR) reports presented by the gambling sector to the Financial Intelligence Unit (FIPO). (Gambling Insider)

In the month of May 2024, the European Union’s AML package got support from the European Gaming and Betting Association (EGBA), which the EU Council then approved later on. This finalized the EU’s new framework for fighting corruption and money laundering.

The built-in money laundering risks in the gambling sector were emphasized by the  Spelinspektionen’s Director General, Camilla Rosenberg, she states:

“The gambling industry is a risk area for money laundering, and we have seen a need for further clarification and guidance in this area. We have therefore revised our guidance and are also conducting a new risk assessment.” 

Besides developing regulations, Spelinspektionen has additionally carried out some awareness sessions on money laundering risks, including the potential misuse of gambling accounts and businesses to fund illegal activities. 

In June 2024, another Danish gambling authority named Spillemyndigheden updated its anti-money laundering regulations to align with the latest EU standards. This guideline update offers the right direction for online gambling operators on how they can hinder money laundering and terrorist financing.

Spelinspektionen has been actively involved in Anti-money laundering initiatives throughout 2024, demonstrating its commitment to international best practices and collaboration. The competent authority has also been preparing for the FATF review, which is an essential evaluation of Sweden’s AML system.

On top of that, Spelinspektionen has played a pivotal role in the EU’s preparatory work to establish the innovative EU Anti-Money Laundering Authority (AMLA) and the upcoming AML regulation applicable throughout Europe. 

The key partners involved in collaborating with Spelinspektionen’s AML initiatives include the Swedish Financial Police, the Swedish Financial Supervisory Authority, and the Swedish Economic Crime Authority. This collaborative approach enables Spelinspektionen to effectively combat money laundering.

Spelinspektionen’s act of updating guidance and risk assessment presents an essential step towards reinforcing the integrity of the Swedish gambling market. These measures, including clear direction, enhanced practices, and supported collaborations, enable Spelinspektionen to empower gambling operators to combat financial crimes. 

The authority’s efforts serve as a valuable example for other jurisdictions seeking to strengthen their own regulatory frameworks and combat the persistent threat of money laundering along with terrorist financing.