Kindred’s subsidiary, Spooniker, has been handed a SEK10 million fine by the Swedish regulator Spelinspektionen for failing to address previously flagged anti-money laundering (AML) issues. The fine comes after a review revealed shortcomings in Spooniker’s customer due diligence processes, essential for preventing money laundering and terrorist financing.
Details of the Case
Spooniker operates under various online gaming and betting licences in Sweden, managing websites such as unibet.se and mariabingo.se. The recent inspection highlighted that the company did not conduct adequate customer verifications, specifically related to high deposit levels and unusual gaming patterns, putting it at risk for money laundering activities.
Historical Context
This isn’t Spooniker’s first run-in with the regulator; they were previously fined SEK10.9 million for similar infractions in November 2022. A lack of action following earlier warnings has now escalated the penalties.
Regulatory Findings
Spelinspektionen found that Spooniker made insufficient efforts to understand the origin of their customers’ funds, failing to comply with their own internal guidelines and regulatory requirements. The lack of due diligence meant that they couldn’t assess whether transactions were legitimate or posed a financial crime risk.
Changes Made
Despite the penalties, the regulator acknowledged that Spooniker had begun to improve its systems, implementing continuous monitoring and monthly loss limits. However, these measures appeared to be insufficient or late in the context of the identified risks.
Key Insights
- Spooniker fined SEK10 million for failures in anti-money laundering practices.
- Regulator identified critical gaps in customer due diligence procedures.
- Previous fines included SEK10.9 million in 2022 for similar issues.
- Spooniker’s response to regulatory feedback has been deemed inadequate.
- Improvements in monitoring and limits have been implemented recently.
Why should I read this?
If you’re in the gaming industry or just interested in regulatory compliance, this piece is a must-read. It sheds light on serious lapses that can occur in due diligence processes and shows how those oversights can lead to significant financial penalties. Understanding these risks could save your organisation a world of trouble down the line!
