BOS approves Ministry of Finance’s proposal to raise AML fines

The Swedish Trade Association for Online Gambling (BOS) has issued a referral response approving the Ministry of Finance’s proposal to equalise anti-money laundering penalties with Gambling Act charges.

To date, the fines associated with AML breaches have been significantly lower than those for other violations that online gambling companies might be guilty of, but BOS stated that putting them on par would serve to send a clear message to the industry about the severity of such offences going forward.

The organisation noted, however, that according to a decision made in the Supreme Administrative Court last spring, all fines relating to AML must be based on GGR rather than turnover, as it is unreasonable to expect companies to pay fees on money that doesn’t belong to them.

Typically, profits to gambling consumers account for 90-95% of total turnover, leaving the gambling surplus at just 5-10%. As a result, the Swedish Gambling Authority’s previous decision to base penalties on turnover rather than GGR has led to fines for companies being abnormally high.

Though the Supreme Administrative Court’s latest ruling will therefore set a new standard of generally lower penalty fees overall, BOS nevertheless believes equalising AML offences with other Gambling Act fines will be a good decision for the industry that actively addresses an important area of concern.

Speaking on the trade body’s response to the Ministry of Finance’s proposal, BOS secretary general Gustaf Hoffstedt said: “BOS sees the logic in elevating violations to the same level as violations of the Gambling Act. The relative size of the penalty fees in relation to each other is an important signal of how serious the violation is [and] these fees will outline that seriousness and the importance of it not being repeated.”