Swedish Casino’s Penalty for Money Laundering Offense Cut By More Than Half

  • Original fine reduced from 8m to 3m Swedish krona, Lotteriinspektionen may still appeal decision
  • Casino Cosmopol admitted failings in money laundering policies and customer protection
  • Operator must have compliance measures in check before new license can be approved
Swedish flag and krona notes
Casino Cosmopol appealed an SEK8m fine for money laundering offenses, with the Administrative Court reducing the fee owed to SEK3m. [Image: Shutterstock.com]

Swedish court reduces penalty

This week, gambling operator Casino Cosmopol had an 8m Swedish krona ($813,344) fine cut by more than half by Sweden’s Administrative Court.

company was fined for being in breach of licensing policies related to money laundering and terrorist financing

Cosmopol has now been ordered to pay just 3m Swedish krona ($305,000), although the Lotteriinspektionen, Sweden’s national gambling regulator, could still appeal the decision.

In November 2018, the company was fined for being in breach of licensing policies related to money laundering and terrorist financing.

Appeal for reduction

The fee reduction comes after the company submitted an appeal to the Swedish Administrative Court in December 2018, shortly after the initial ruling. Casino Cosmopol admitted having breached its license conditions but disagreed over the fine, despite initial findings pointing to “serious and systematic failings”.

The regulator found several such shortcomings over a seven-month period that were in breach of Chapter 2, Section 3 of the Money Laundering Act, which regards customer risk assessments. It ordered the company to put together new measures that would fully comply with guidance.

Transactions not compatible

The court’s initial ruling also found that the transactions system that Casino Cosmopol used was not compatible with the Money Laundering Act and that documentation was lacking. This was coupled with further concerns, such as insufficient measures surrounding the company’s knowledge of players to possibly prevent them from problem gambling.

the transactions system that Casino Cosmopol used was not compatible with the Money Laundering Act

Following the Administrative Court’s verdict that the fine should be cut by more than half, Lotteriinspektionen has said it will consider its options and may launch an appeal.

New licensing possibilities under consideration

Casino Cosmopol has since submitted an application for a license under Sweden’s new gaming act, which has been in effect since the start of 2019. However, the regulator has stated that additional measures will need to be in place before consideration.

It said, “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.”