Videoslots Fined SEK9m for AML Failures in Sweden

Videoslots, a well-known player in the online gambling industry, is facing a hefty SEK9 million fine after a thorough investigation by Spelinspektionen, the Swedish gaming authority. The inquiry exposed significant shortcomings in the company's anti-money laundering (AML) practices, particularly in relation to customer knowledge.

The investigation specifically focused on Videoslots' interactions with its ten largest customers between 2019 and 2021. These customers were selected based on their deposit activity, and a glaring issue emerged. Among these customers was one who had deposited more than SEK5 million over two years, despite having an income of only SEK57,000 in 2018. Shockingly, this player continued to deposit and withdraw substantial sums of money, even after an initial risk was identified.

In response to the allegations, Videoslots argued that the audited customers were not representative of their overall commitment to AML compliance. They emphasized that the primary purpose of AML rules is to report suspicious activities to financial intelligence units, rather than monitor customer income closely. However, Spelinspektionen countered that businesses have a responsibility to detect and deter suspicious activities themselves.