Casino Cosmopol’s AML penalty lowered by Sweden’s Administrative Court

Sweden’s Administrative Court has confirmed that it will reduce a penalty issued to Casino Cosmopol in 2018 from SEK8m to SEK3m, however national gambling regulator Lotteriinspektionen could appeal against the ruling.

The fine, issued in relation to systematic deficiencies in Casino Cosmopol’s policies related to money laundering and terrorist financing in November 2018, were found to have ‘serious and systematic’ failings. 

The news follows on from an appeal submitted by Casino Cosmopol in December 2018, which was heard in Sweden’s Administrative Court last week. The hearing found that while the court agreed that the casino had breached its licence conditions, there should be a reduction in the penalty fee paid.

In response to the ruling, Lotteriinspektionen has said it will consider launching an appeal of its own against the Administrative Court decision.

The regulator stated: “Casino Cosmopol AB has applied for a license to operate games when the new Gaming Act comes into force at the turn of the year. The Lottery Inspectorate has now informed Casino Cosmopol that they need to supplement their application with a description of the measures planned to comply with the money laundering regulations.”

The original investigation found numerous shortcomings across a several areas at Casino Cosmopol over a period of seven months from 1 January to 31 July, 2018.

Lotteriinspektionen instructed the casino to roll out measures which comply with the guidance in its ruling, citing a number of breaches to Chapter 2 Section 3 of the Money Laundering Act in reference to the risk assessment of customers.

The regulator also said that transactions systems in place at the casino were not compatible with the Money Laundering Act, outlining its concerns about a lack of documentation.

A number of concerns were also identified by the regulator, including insufficient player knowledge for measures in place to prevent problem gambling. 

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