SBC News Swedish Inspectorate deepens KYC checks to combat AML threats

Swedish Inspectorate deepens KYC checks to combat AML threats

Spelinspektionen, the Gambling Inspectorate of Sweden, has updated its guidelines for online operators to strengthen protections against money laundering and terrorist financing.

The fifth-edition of guidelines have been revised in cooperation with FIPO, the Financial Intelligence Unit (FIPO) of Sweden, which identifies online gambling as a high-risk sector due to technological advancements and economic growth, increasing the risk of money laundering through high stakes, winnings, and turnover.

The guidance is endorsed by Spelinspektionen, as the inspectorate maintains a risk-based approach, requiring operators to apply proportional measures against money laundering and terrorist financing.

For 2025, the guidelines introduce stricter due diligence for customers onboarding online gambling platforms, as enhanced requirements go beyond standard KYC checks.

Swedish operators are now required to verify each customer using a valid identification document, such as a passport, SIS National ID card, driver’s licence, or tax ID.

New guidelines mandate operators to undertake comprehensive customer background checks, including collecting data on the purpose and nature of the customer’s gambling activity.

Enhanced Due Diligence for High-Risk Customers

Operators must ensure proof of the source of funds for large deposits and determine whether the customer is a Politically Exposed Person (PEP). Further requirements stipulate enhanced due diligence (EDD) for high-risk customers, which includes additional verification of income sources and bank statements.

To improve customer due diligence, operators are urged to implement ‘routine internal controls’ to ensure that thorough KYC checks are conducted by staff, with records kept for oversight purposes.

Strengthening Internal Controls & Staff Training
Internal controls should focus on customer background checks, risk management, account monitoring, and staff training, ensuring frontline employees can identify potential threats.

Staff training is viewed as a key compliance measure, as customer care employees play a crucial role in identifying suspicious behaviour and AML (Anti-Money Laundering) infringements.

To assist regulatory agencies, operators must retain customer identification data, transaction records, and risk assessments for five years. Documentation should be dated and easily retrievable for regulatory audits.

Regulatory Overview

“The gambling industry is a risk area for money laundering, and we have seen a need for further clarification and guidance in this area. We have therefore revised our guidance and are also conducting a new risk assessment,” commented Spelinspektionen’s Director General, Camilla Rosenberg.

Spelinspektionen stated that the guidelines were prepared in alignment with the EU’s preparatory work on the establishment of the new EU Anti-Money Laundering Authority (AMLA) and the upcoming EU regulations on money laundering.

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