Swedish casino operator Casino Cosmopol is facing a SEK2 million (£154,000) penalty for failing to effectively implement anti-money laundering (AML) measures, according to an investigation conducted by Swedish regulator Spelinspektionen.
The regulator also issued a warning to the Swedish land-based casino brand of Svenska Spel.
Spelinspektionen’s investigation, launched in November 2021, focused on Casino Cosmopol’s AML customer awareness efforts.
The regulator found that the company had “failed in its work with customer knowledge in several areas.”
Additionally, the probe examined past shortcomings related to specific requirements in the Money Laundering Act.
In response to the sanctions, Casino Cosmopol accepted the criticism but emphasized that it had already addressed many of the historical issues.
The company stated that its current AML measures are in compliance with regulatory requirements.
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CEO Ola Enquist expressed the brand’s commitment to combat money laundering and stated that they would carefully analyze the Gambling Authority’s decision.
To enhance its AML efforts, Casino Cosmopol has implemented several measures, including player registration for gaming machines and tables, lower gambling thresholds for interventions, improved system support for recording and monitoring transactions, and extensive money laundering training for staff.
The company has also allocated more dedicated staff for follow-ups and monitoring.
The increased costs associated with social responsibility and AML measures have contributed to Casino Cosmopol’s higher losses in the third quarter.
The brand, along with Svenska Spel’s Casino Cosmopol and Vegas slots verticals, reported a collective quarterly net loss of SEK35 million, which was SEK22 million higher than the same quarter in the previous year.
Net gaming revenue across the two areas decreased by 11% to SEK247 million.
To remain competitive, Svenska Spel introduced new opening times for Casino Cosmopol properties in October, aiming to counter competition from restaurant casinos.
Despite the challenges, Casino Cosmopol remains committed to improving its AML measures and upholding its social responsibility obligations in the gambling industry.