PokerStars operator slapped with Swedish penalty for AML breaches
TSG Interative PLC, who operates the Swedish version of PokerStars, has received a formal warning and a fine for failing to follow anti-money launering (AML) rules.
The company has been formally warned and will need to pay a SEK 7 million fine (amounting to $733,754), as enforced by the Swedish gambling authority, Spelinspektionen. The punishment comes after an investigation revealed major issues from TSG in following AML rules.
The company reportedly, according to Gambling News, did not check the origin of funds for some big spenders on the platform. The company took a closer look at ten players aged between 18 and 29 who put in large sums in 2023, which the watchdog noted was too slow in making sure the transactions were legitimate.
Spelinspektionen went on to state that TSG had also not gathered enough information to assess customer behavior, which could pose a money laundering risk. Many of the customers’ payments were not in line with expected behavior from those within that age group, based on average Swedish earnings.
In addition, TSG’s risk limits were deemed too high to notice and prevent potentially fraudulent activity. For example, limits are set at $20,000 for single transactions and $40,000 for total net deposits, leaving a lot of room for early red flags at lower amounts.
How has the PokerStars operator responded?The operator of PokerStars maintains that its in-house AML systems are good enough, despite examples like a customer being tagged as high-risk continuing to gamble on the platform for weeks without providing the necessary paperwork.
The Swedish gambling authority rejected TSG’s claim that customer winnings provided enough justification for new deposits without further checks, with Spelinspektionen stating that companies still need to record where the funds come from.
Deeming the mistakes listed above as both major and widespread throughout PokerStars’ operations in Sweden, the fine of SEK 7 million ($733,754) was levelled against the company. This could have been even higher thanks to a recent law change increasing the standard fines, in an ongoing crackdown on unlicensed and illegal online gambling.
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