Gambling Accounts Should be Included in the Account and Safe Deposit System

Strängnäs, Sweden (May 29, 2024) —  Spelinspektionen (The Swedish Gaming Authority) assesses that there are major risks of gambling accounts being used for money laundering or other criminal activities. Today, gambling accounts can easily be used to store, transfer and convert money from criminal activities.

The Swedish Gaming Authority believes that the account and safe deposit box system should also include information about gambling accounts. In the assessment, the Swedish Gaming Authority has taken into account, among other things, that there is a strong connection between money laundering in the gaming industry and serious organized crime. The authorities that have access to the system would then receive information about any gambling accounts with licensed gambling companies. It would improve the ability to prevent and investigate crime, but also facilitate taxation and enforcement.

Most licensed gambling companies that offer gambling accounts are based abroad. The benefit of expanding the system largely depends on the connected Swedish authorities’ inquiry towards these gambling companies. Therefore, a thorough investigation of the question device needs to be done before adding information about gambling accounts to the system.

Additional measures identified

Work that is already underway and will be developed at the Swedish Gambling Inspectorate is preventive efforts in the area of ​​money laundering, such as updated guidelines as well as training and information for the industry. An increase in the skills of the gambling companies in the preventive work against money laundering and the financing of terrorism reduces the risk of gambling accounts being used for criminal activities.

The Swedish Gaming Authority has also identified other possible measures to reduce the risks of gambling accounts being used for criminal activities.

• A review of the Swedish Gaming Authority’s regulations on license holders’ obligations to check the receiver and the sender when making deposits and withdrawals from gambling accounts.
• Investigate the conditions for a central player register at the Swedish Gambling Inspectorate to replace separate gaming accounts with the license holders. The proposal can be developed with the Gambling Inspectorate gaining access to player data in its supervisory activities and to assist law enforcement authorities in their work.
• A requirement for traceability of all profits and losses of all licensees.

Reports and assignments

• Final report of government assignment Fi2023/03186 on measures to prevent gambling accounts from being used for criminal activities.PDF 
• The Swedish Gaming Authority’s partial report of Fi2023/03186.PDF
  
• Government assignment Fi2023/03186.PDF

The account and safe deposit box system

It is important that authorities can quickly establish the identity of holders of accounts and safes at financial companies. The account and safe deposit box system was introduced with the aim of streamlining the authorities’ access to this information. The Swedish Tax Agency provides a technical platform called the Mechanism which, at present, gives connected authorities the opportunity to directly and immediately receive information about accounts and safe deposit boxes at credit institutions and investment companies.

About the government mission

On 14 December 2023, the Swedish Gambling Inspectorate received a government assignment to analyze and describe the risks of gambling accounts being used for money laundering or other criminal activities. If necessary, the Spelinspektionen would produce proposals to counter such risks, and the socio-economic consequences of the proposals would be analysed. The assignment also included looking at whether gambling accounts should be covered by the so-called account and safe deposit system and its effects.\

SOURCE: Spelinspektionen.