The Swedish Trade Association for Online Gambling (BOS) has offered its perspective on the proposed amendments presented by the Swedish Ministry of Finance to the Money Laundering Act. Gustaf Hoffstedt, the Secretary General of BOS, expressed the association’s viewpoints on these changes, emphasizing their significance for the Swedish gambling market.
BOS as the Leading Trade Association:
BOS represents approximately twenty gambling companies operating in the Swedish gambling sector, making it the largest trade association within the industry in Sweden. All members of BOS hold licenses or permits issued by Spelinspektionen, the Swedish Gambling Authority.
Proposed Changes to Money Laundering Act:
The proposed modifications aim to elevate Anti-Money Laundering (AML) violations to the same level as violations under the Gambling Act. This adjustment would result in increased fines for AML violations.
BOS’s Stance on Proposed Changes:
Gustaf Hoffstedt asserted that there is no justification for downgrading AML violations when, in fact, these are among the most severe violations that can occur in the gambling market. BOS expressed approval for the proposal but also highlighted specific additional considerations.
Court Management of Sanction Decisions:
BOS suggested that it would be appropriate for the courts to handle sanction decisions. However, Hoffstedt pointed out that this approach could lead to potential complications if the courts were to favor gambling companies in their rulings.
Sanction Fees Reflecting Industry’s Financial Stability:
BOS recommended that sanction fees be aligned with the financial stability and credibility of the gambling industry. This consideration seeks to ensure that fines are proportionate and just.
Penalty Charges Based on Gross Gaming Revenue (GGR):
BOS stressed the importance of penalty charges for AML breaches, similar to breaches of the Gambling Act, being calculated based on Gross Gaming Revenue (GGR). GGR represents the amount of money remaining after winnings have been paid out to gambling consumers. This approach aligns with the Ministry of Finance’s memorandum and aims to rectify the issue of high fees for companies when the current penalty fees are based on total turnover.
BOS’s response to the proposed changes to the Money Laundering Act reflects its commitment to maintaining a fair and regulated gambling market in Sweden. By advocating for proportional sanctions, court oversight, and a GGR-based penalty structure, BOS aims to strike a balance between enforcing AML measures and supporting the stability of the Swedish gambling industry.