Casino Cosmopol Faces SEK2m Penalty for AML Failings

Swedish land-based casino brand Casino Cosmopol has found itself in hot water as it faces a substantial SEK2 million penalty for its anti-money laundering (AML) shortcomings. The penalty has been imposed following a comprehensive probe conducted by the Swedish regulator, Spelinspektionen.

In addition to the penalty imposed on Casino Cosmopol, Spelinspektionen has also issued a stern warning to Svenska Spel, the parent company of the casino brand, for its association with these AML failings.

Spelinspektionen's investigation revealed that Casino Cosmopol had failed in various aspects of its customer knowledge obligations. The primary focus of the investigation was on the casino's AML customer awareness efforts, which were found to be lacking.

Furthermore, the probe revisited "previous shortcomings regarding certain requirements in the Money Laundering Act," emphasizing the need for a more comprehensive AML approach.

Responding to the penalties, Casino Cosmopol accepted the criticism and acknowledged the historical nature of the issues. The brand affirmed that its current AML measures now align with regulatory requirements.

To rectify the situation, Casino Cosmopol has implemented a series of measures, including player registration for gaming machines and tables, lower gambling thresholds for interventions, improved system support for transaction recording and monitoring, and intensive money laundering training for its staff.

CEO Ola Enquist expressed the company's commitment to combating money laundering, emphasizing the importance of addressing this serious social issue comprehensively. Casino Cosmopol has vowed to carefully analyze the Gambling Authority's decision to ensure ongoing compliance.

Notably, increased expenses related to social responsibility and AML measures contributed to Casino Cosmopol's heightened losses in the third quarter. Svenska Spel's Casino Cosmopol and Vegas slots segments reported a combined SEK35 million quarterly net loss, representing a significant increase compared to the previous year. These losses were attributed to a decline in net gaming revenue, which decreased by 11% to SEK247 million.

As the repercussions of these AML failings continue to unfold, Casino Cosmopol and Svenska Spel face both financial consequences and the imperative to enhance their AML practices moving forward.