LeoVegas Gaming Plc receives warning and penalty fee for shortcomings in its work against money laundering and terrorist financing

The Spelinspektionen, the Swedish Gaming Inspectorate, announces LeoVegas Gaming Plc has been given a warning and a penalty fee of SEK 2 million.

The Money Laundering Act places high demands on gaming companies licensed under the Gaming Act. Gambling companies must counteract the use of the business to launder money or finance terrorism. The law is based on a risk-based approach, which means that licensees must take measures that are in proportion to the risks to which they are exposed.

The licensee must identify its customers (KYC) and find out enough information to be able to assess and manage the risks associated with the customer (SOF etc.). In the event of a high risk, more comprehensive measures for customer awareness must be taken. LeoVegas has not operated in such a risk-based manner as required by Swedish law.

LeoVegas has failed in its work on customer knowledge and risk classification of customers and it has failed in the documentation for what measures have been taken. This has entailed significant risks that LeoVegas may have been used for money laundering and terrorist financing, which must be considered serious. The company therefore receives a warning and a penalty fee of SEK 2 million.

LeoVegas Gaming Plc offers games on the websites gogocasinos.com and leovegas.com.

The decision in its entirety is attached.

The size of the sanction

The size of the sanction is based on the Money Laundering Act, unlike most other of the Swedish Gaming Inspectorate’s supervisory decisions which are based on the Gambling Act. According to the Money Laundering Act, the ceiling for this type of infringement is EUR 1 million.

About the Spelinspektionen

The Swedish Gaming Inspectorate is the authority that must ensure that the Swedish gaming market is legal, safe and reliable. We protect the interests of consumers and must also contribute to reducing the risks of social harm

 

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