Videoslots Sanctioned in Sweden for AML Violations
LISTEN TO THIS ARTICLE:Spelinspektionen, the Swedish gambling regulator, has issued Videoslots with a fine of SEK9m (€760,000/$808,809) for violations of anti-money laundering (AML) and financing of terrorism regulations.
In an investigation conducted by Spelinspektionen, Videoslots was found to have failed to meet customer knowledge requirements as mandated by Swedish gambling rules. Between 2019 and 2021, the Malta-headquartered operator allegedly defaulted in its Videoslots’ AML protocols with 10 of its top customers.
Spelinspektionen selected these ten customers randomly from those who made the most deposits and deposited the highest total sums during the period. The regulator then scrutinized the operator’s handling of these individuals and discovered a failure to address discrepancies between income and gambling transactions.
One of these customers deposited over SEK5 million within the two-year period despite having an income of only SEK57,000 in 2018. This player continued to deposit and withdraw substantial sums of money for two years, even after an initial risk was detected.
Videoslots’ Response
In its response to the allegations, Videoslots stated that the audited customers do not accurately reflect the high level of compliance it strives to attain. The company also argued that the primary aim of AML regulations is to report suspicious activities to financial intelligence units.
Nevertheless, Spelinspektionen ruled that it is the responsibility of the business to identify and prevent suspicious activity. The regulator stated that Videoslots had violated several sections of the Money Laundering Act. These include delaying in implementing of enhanced customer awareness measures and failing to document and preserve data regarding enhanced customer awareness measures.
The regulatory authority acknowledged Videoslots' commitment to making improvements following the investigation. However, it pointed out that although Videoslots was cooperative, it did not actively facilitate the investigation.
Videoslots Limited is the parent company of popular online platforms like videoslots.com, videoslots.co.uk, and mrvegas.com. The operator is also licensed in Malta, Great Britain, Denmark, Italy and Spain.
Fines from Other Jurisdictions
2023 has been a challenging year for Videoslots regarding penalties from gambling regulators. Earlier this year, the operator was handed a €10m fine by the Dutch regulator Kansspelautoriteit (KSA) for allegedly violating the Dutch Gaming Act.
In June, Videoslots agreed to pay a £2 million settlement fine in the United Kingdom following social responsibility and anti-money laundering (AML) failures uncovered by the UKGC.
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