Spelinspektionen Fines Casino Cosmopol for Anti-Money Laundering Failures

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Spelinspektionen, the Swedish Gambling Authority (SGA), has announced it has handed out a fine to Casino Cosmopol AB following an investigation into the operating practices of the casino operator.

The regulator started investigating gaming operators in Sweden, in 2021 to ensure the responsible gambling and anti-money laundering (AML) procedures meet the compliance requirements set out by the gambling legislation. The Casino Cosmopol was also monitored for several breaches of the AML legislation that have been highlighted by the regulator before the investigation.

The SGA found that some of the procedures at Casino Cosmopol were not adequate to prevent breaches of the gambling legislation, and the Spelinspektionen said it had no option but to issue a fine of SEK 2 million to the operator.

Casino Cosmopol’s List of Compliance Failures

In the statement, the Swedish Gambling Authority listed several breaches of the guidelines where Casino Cosmopol has failed to meet the regulatory compliance legislation in the jurisdiction.

The regulator found that on multiple occasions, the gaming operator did not provide the correct source of funds information. There was also not enough scrutiny of customer details, including proof of income and relevant customer documentation.

Many customers were continually seen as a low risk even when their playing behavior should have been flagged as high risk. There is a concerted effort in the iGaming industry to get players to agree on betting limits, however, the regulator found that Casino Cosmopol failed to stop customers from gambling once they had reached their limits.

Spelinspektionen Issue a Warning and Fine

Once the Swedish regulator had completed its investigation, it issued both a warning for future conduct and a fine to the gaming company to serve as a warning to gaming operators about the need for compliance in the industry.

The SGA has stated it is determined to work with all stakeholders in the gaming industry to ensure that all the guidelines relate to the gambling compliance legislation. Issuing warnings backed up with fines sends a strong signal to all gaming operators that they must have the correct procedures set up to meet compliance rules.

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