TSG Interactive PLC, the operator behind PokerStars in Sweden, faces a handsome penalty from the Swedish Gambling Authority, known as Spelinspektionen. This comes after an investigation revealed significant gaps in their anti-money laundering (AML) practices, particularly regarding high-spending customers.
Summary
The Swedish Gambling Authority has issued a SEK 7 million fine (approximately $733,754) to TSG Interactive for failing to adequately verify the sources of funds for several high-value customers. An investigation highlighted that the operator neglected its due diligence and didn’t assess potential money laundering risks properly.
Specifically, the authority scrutinised ten young players aged 18 to 29 who made substantial deposits and found inconsistent patterns with expected income levels for their demographic. TSG’s internal risk limits, allowing transactions up to $20,000 without further checks, were deemed insufficient, leading to missed early warning signs of potential illicit activity.
These issues were exacerbated by a failure to act on flagged risky customers, with some allowed to continue gambling for weeks without submitting necessary documentation. Despite TSG’s claims that their transaction monitoring systems were robust enough, the investigation showed otherwise, prompting the regulator to deem their operations non-compliant with Swedish AML laws.
Key Points
- TSG Interactive received a SEK 7 million fine from Spelinspektionen for serious AML deficiencies.
- The investigation focused on high-spending young players, revealing inadequate source-of-funds verification.
- Risk limits were too high, allowing potential money laundering activities to go unchecked.
- Regulatory authorities emphasised the importance of thorough checks, even for funds from previous winnings.
- TSG is licensed to operate in Sweden until the end of 2028 but must improve compliance to avoid further penalties.
Why should I read this?
This article sheds light on the ongoing struggle within the gambling industry to meet stringent AML regulations. As the landscape changes, staying informed about the failures and responsibilities of major operators like TSG Interactive helps you understand the serious implications for consumer protection and industry accountability. If you’re interested in gambling regulations and compliance issues, this is definitely worth a read!