Sweden’s Gambling Inspectorate, Spelinspektionen, has updated its guidelines for online operators to strengthen protections against money laundering and terrorist financing.
Spelinspektionen revised the guidelines in collaboration with the Financial Intelligence Unit (FIPO) of Sweden. FIPO classifies online gambling as a high-risk sector due to technological advancements and economic growth, which increase the risk of money laundering through high stakes, winnings, and turnover.
The new guidelines introduce stricter due diligence measures for onboarding customers. Online gambling operators must verify each customer using a valid identification document, such as a passport, SIS National ID card, driver’s license, or tax ID.
Operators must conduct comprehensive background checks, collecting data on the purpose and nature of each customer’s gambling activity. They also need to ensure proof of the source of funds for large deposits and determine if a customer is a Politically Exposed Person (PEP).
For high-risk customers, operators must apply enhanced due diligence (EDD), including additional verification of income sources and bank statements.
Spelinspektionen requires operators to implement routine internal controls to strengthen compliance. These measures include customer background checks, risk management, account monitoring, and staff training. Operators must ensure that employees conducting KYC checks follow thorough verification procedures and keep records for regulatory oversight.
Staff training plays a crucial role in compliance. Gambling operators must equip customer service teams with the knowledge to identify suspicious behaviour and detect Anti-Money Laundering (AML) infringements.
Operators must retain customer identification data, transaction records, and risk assessments for five years. They must also ensure all documentation is dated and easily accessible for regulatory audits.
Spelinspektionen’s Director General, Camilla Rosenberg, emphasized the importance of the new guidelines:
“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.”
The regulator aligned these updates with the European Union’s preparatory work on the new EU Anti-Money Laundering Authority (AMLA) and upcoming EU regulations on money laundering.