Exclusive: William Hill locks horns with Swedish bank over account termination

William Hill has become the latest Swedish-licensed operator to file a complaint with Swedish authorities over the proposed withdrawal of banking facilities by Skandinaviska Enskilda Banken AB (SEB).

The Mr Green operator issued a written injunction request to the Swedish Financial Supervisory Authority (Finansinspektionen) after SEB gave notice that it would terminate its existing corporate banking agreement with the bookmaker.

SEB has justified the measure by referring to general misgivings with the gambling sector i.e., that the sector would be potentially more susceptible to money laundering activities than a conventional business.

This termination, if enacted will result in the operator being stripped of its bank account and access to the BankID and Swish payment methods. Hills has called for an injunction requiring SEB to maintain and uphold the services going forward.

In a complaint seen by EGR, William Hill claims that in stopping corporate banking access, SEB has violated contractual obligations contained within the Swedish Deposit Guarantee Act.

Under the act, a bank seeking a permit from Finansinspektionen to conduct banking operations must fulfil a so-called ‘obligation to contract’, which states that those who request basic banking services must be provided with such services.

EGR understands Hills has been denied alternative corporate banking access by Nordea, Handelsbanken, Danske Bank and Swedbank on similar grounds.

However, Hills alleges disproportionality in its complaint, citing competing Sweden-based operators that retain their corporate banking facilities, despite facing the same AML risks.

Swish is one of the most popular payment methods in Sweden having launched in 2012, while BankID is a mobile identification system for customers which can be used by operators for KYC checks.

Hills also suggests that SEB is abusing its dominant market position in the Swedish financial market, a breach under the terms of the Swedish Competitions Act, and that this denial leaves the firm at a competitive disadvantage in the Swedish market.

According to Hills as a Malta licensee, the removal of its corporate banking account by SEB constitutes a violation of Article 56 of the Treaty for the Functioning of the European Union (TFEU), specifically relating to the free movement of goods and services.

In January, similar complaints were made by three unnamed Swedish operators to the Swedish Competitions Authority (SCA) for alleged market abuse of a dominant position by Swedish banks. These complaints were ultimately dismissed by the SCA.

In a statement provided to EGR, William Hill said “We can confirm we have decided to take the same action as a number of other licensed operators in seeking to rectify the measures proposed to be taken by SEB. The measures proposed by Swedish banks are not only illegal, they are also detrimental for the integrity and functioning of an important licensing system backed by a vast majority of the Swedish parliament.”