BOS Takes Initiatives to Strengthen AML Compliance in Sweden

Branschföreningen för Onlinespel (BOS), a Swedish trade association working for the online gambling industry, has taken two initiatives to strengthen the fight against money laundering; publishing an AML regulatory checklist, and a report on money laundering based on BOS member interviews.

This step aims to strengthen AML compliance practices in Sweden and ensure the reliability, legality & safety of the gambling & gaming industry by establishing a unified benchmark for gambling operators.

AML regulatory checklist, published by BOS, assists the Swedish online gambling industry in strengthening AML practices.  The sole purpose is to meet both societal and regulatory expectations. The checklist covers record-keeping, whistle-blowing channels, risk assessments, and customer due diligence (CDD).

BOS’s “commissioned report” highlights that strained banking relationships and internal shortcomings are different challenges faced by operators. This checklist also emphasizes training of staff and compliance with EU & Swedish regulations, specifically AML Laws.

Not to forget, in November, industry representatives highlighted their discontent with insufficient enforcement actions and government channelization rates against black market operators.

BOS and Advisense jointly published a report on money laundering, based on interviews with its members. It includes different benchmarks to improve AML practices for banks, authorities & gambling companies, said media states.

These initiatives were taken to reduce the spark caused by unclear guidance from the Swedish Gambling Authority (SGA), resulting in frustration among operators.

SGA Needs To Clarify Its Stance

One of the respondents criticized the Advisense report and suggested:

“The Swedish Gambling Authority needs to decide what they want — a risk-based approach or something else. They need to establish a framework within which operators can work risk-based and have an open dialogue without fear of repercussions. There must be room for improvement!”

Regulatory ambiguities remain, even though Sweden has taken different initiatives to improve AML compliance. Operators struggle to decode SGA’s instructions – both vague & prescriptive, as proven through the Advisense report.

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This inconsistency restricts the development of risk-based & effective frameworks, leading to a “checkbox compliance” procedure to prioritize superficial adherence to regulations over risk management.

For instance, to improve coordination between gambling companies & financial police, the Swedish Anti-Money Laundering Intelligence Task Force was established after the banking sector’s inspiration. Hoffstedt also presented the checklist & report to ensure accessibility for all gambling companies.