The Swedish Trade Association for Online Gambling (BOS) has chimed in on recent proposed changes to the Money Laundering Act, a move sponsored by the Ministry of Finance. These ideas attempt to increase punishments for particular infractions.
The BOS, a prestigious organization representing around 20 licensed gaming establishments in Sweden, has expressed satisfaction at being asked to offer feedback on this topic. In their evaluation, they found a logical link between increasing fines for anti-money laundering (AML) infractions and current sanctions for Gambling Act offences.
Gustaf Hoffstedt, the Secretary General of BOS, insists that AML infractions are among the most serious transgressions and should not be taken lightly. As a result, they remain steadfast in their support for the Ministry’s plan, subject to a number of critical issues being woven into the fabric of these adjustments.
BOS emphasizes the importance of Spelinspektionen penalty rulings being of the highest quality. Hoffstedt advises against judges significantly changing the authority’s findings, citing potential legal stumbling blocks. As a possible solution, he has proposed the establishment of supervisory cases to enhance responsibility and transparency.
Hoffstedt introduces another critical facet to this discourse, asserting that the magnitude of sanction fees should align with the gambling sector’s “relatively marginal impact” on the financial system’s overall stability and credibility when juxtaposed with financial institutions. This divergence in economic influence is pivotal when gauging appropriate penalties.
BOS, lauding the Ministry of Finance’s foresight, strongly advocates for basing penalties for AML breaches on the Gross Gaming Revenue (GGR) of gambling firms. This aligns with the Ministry’s existing stance. Hoffstedt expounds on this, elucidating the intrinsic distinction between assessing penalties based on total turnover versus GGR.
Typically, he elucidates, gambling surplus merely constitutes a modest 5-10 percent of the total turnover, with the lion’s share, 90-95 percent, being profits channeled to gambling consumers. In his perspective, it’s inherently unjust to impose penalty fees on the very funds that don’t belong to the gambling entity but rather accrue to the benefit of consumers.
Hoffstedt, in a closing reflection, applauds the proposed amendments for instilling a much-needed sense of proportionality into the sanctions framework. These changes, he believes, will set equitable standards while sending unequivocal signals to any companies contemplating flouting the regulations.
The post Swedish Online Gambling Association Responds to Proposed Money Laundering Act Amendments appeared first on iGaming.org.