Swedish gambling regulator seeks high money-laundering fines

The Swedish Gambling Authority (SGA) has taken a tough stance against money laundering and requested the Ministry of Finance to increase the maximum penalty of the gambling operators in violation of Money Laundering Act.

In its petition, the authority demands an increase in maximum penalty fee for licensed gambling operators breaking the Money Laundering Laws form €1 million to 10 per cent of the business’ total revenue in the last financial year.

SGA argued that, given the turnover of the larger gambling operators in Sweden, the current maximum penalty of €1 million is too low. The market for online gambling is an ever-growing industry in Sweden. According to SGA, the regulated market generated a net revenue of SEK 17.9 billion (€1.79bn) during the first three quarters of 2019, compared to SEK 16.7 billion in 2018.

The online gambling industry is vulnerable to money laundering, as a large amount of cash flows through sportsbooks and online casinos every day. The Money Laundering Act ensures that the gambling casinos take the required steps to stop money laundering. On January 13th, the regulator unveiled a new system for licensed operators to report suspected money laundering and terrorist financing.