A Kindred affiliate was imposed a SEK10m penalty in Sweden due to regulatory violations
Revamped Version:
Holdin' em high with Kindred's subsidiary Spooniker, huh? This bad boy boasts a basket full of online gaming and betting licenses in Sweden, runnin' the show on seven slick websites like unibet.se, bingo.se, ottocasino.se, and mariabingo.se. But, recent proceedings with Spelinspektionen, Sweden's gambling watchdog, had them droppin' a heavy fine of SEK10 million ($1 million) on ol' Spooniker.
In a thorough review of their operations, Spelinspektionen found that Spooniker didn't quite hit the mark when it came to customer due diligence, leaving them unable to properly evaluate money laundering risks.
Previously, a Blip on Spooniker's Radar
Remember back in 2022 when ol' Spooniker had some "shortcomings" in their money laundering and terrorist financing mitigation processes? Yep, they copped a whopping SEK10.9 million ($1.1 million) fine. Talk about a tough lesson!
In a follow-up examination, Spelinspektionen asked for the lowdown on five specific customers who registered between May 2023 and April 2024. They also demanded to see Spooniker's risk assessment and customer monitoring procedures.
Dive into those customer records, and Spelinspektionen discovered many of 'em were flagged repeatedly by Spooniker's monitoring system due to high deposits and deviant gaming patterns.
Late Response from Spooniker
Spelinspektionen pointed out that apart from jotting down one customer's taxable income, Spooniker didn't implement any additional measures. Ouch!
The regulator stated that it's swell these players were raking in deposits equal to, or above, their annual taxable income, but Spooniker should've beefed up their customer due diligence game given they had the financial info to do it.
Better yet, Spelinspektionen reported that Spooniker's documentation on transaction chains was scatterbrained, missin' precious parts of the cash flow from one gambling company to a customer's bank account and then into their Spooniker account.
"By not diggin' deep enough to verify the source of the dough, the company couldn't tell if the customers' activities and transactions were legit, or a risky business," said Spelinspektionen.
Spooniker allegedly dragged their feet on implementing customer due diligence measures after the initial review.
One customer, including in the more recent review, dropped a whopping SEK460,000 and ol' Spooniker should've tightened the reins on that one. The regulator thought a stricter approach and follow-ups would've been ideal.
Spooniker Steps Up its Game
The regulator didn't just doll outNegative Nancy vibes, though. Spooniker can tout a new continuous monitoring system and monthly loss limits in its achievements! Plus, they asserted that there've been no additional money laundering signs from the players under review since.
On June 1, 2024, the Swedish gambling watchdog mentioned a revised calculation basis for penalty fees, but as Spooniker's customer due diligence failings took place before that, they're stuck with dishin' out a €1 million sanction.
In 2023, Kindred's Spooniker got a harsh SEK30 million spank from the Swedish regulator for offering unauthorized bonuses and lotteries. Looks like ol' Spooniker ain't havin' the best luck!
- Spelinspektionen's recent examination of Spooniker in 2024 revealed deficiencies in customer due diligence, hindering the ability to effectively evaluate money laundering risks.
- In light of these findings, Spelinspektionen fined Spooniker SEK10 million ($1 million) for these shortcomings, serving as a reminder of the importance of proper customer due diligence in the casino-and-gambling industry.
- Spooniker's failure to implement additional measures in response to high deposits and suspicious gaming patterns from specific customers was particularly noticeable during the review period, stretching from May 2023 to April 2024.
- Spelinspektionen's report also criticized Spooniker's documentation on transaction chains, stating that it lacked crucial details about the cash flow from one gambling company to a customer's bank account and then into their Spooniker account.
- Despite these criticisms, Spooniker has taken steps to improve its practices, implementing a new continuous monitoring system, monthly loss limits, and allegedly showing no additional money laundering signs from the reviewed players since.
