BOS says Swedish regulator's AML approach is harsh

Spelinspektionen, the authority that regulates and supervises online gambling in Sweden, takes a more sanctions-focused stance than other Swedish agencies, especially in its anti-money laundering (AML) supervision. This finding is based on a new report commissioned by the Swedish Online Gambling Trade Association BOS and written by the law firm Nordic Legal.

BOS Secretary General Gustaf Hoffstedt said the agency deviates from the standards and procedures generally adopted by Swedish public authorities. According to Hoffstedt, Spelinspektionen places less emphasis on dialogue and joint problem solving. He argued that the licensed market would benefit if the agency brought its working methods closer to those of other government bodies.

The report compared three areas: AML supervision, the use and size of sanction fees, and suitability assessments of owners and senior executives. The comparison included the Financial Supervisory Authority (FI), the Stockholm County Administrative Board, and the Swedish Schools Inspectorate.

According to the report, FI and the Stockholm County Administrative Board apply a risk-based approach at the system level. They review operators' risk assessments, procedures and controls, and verify effectiveness in practice using samples from customer files. Spelinspektionen, by contrast, mostly acts through sampling and a focus on customer files.

Nordic Legal reviewed 12 AML decisions issued since 2021. It found that 11 of the decisions were based on five to fifteen customer files and that, in most cases, the operator's overall risk assessment and policies were left outside the scope of the supervision.