Spelinspektionen Reports Progress of Anti-Black Market Collaboration with Finansinspektionen

The Spelinspektionen, Sweden’s gambling regulator, has published a partial report on the ongoing review of how collaboration with the Finansinspektionen can strengthen the efforts against illegal gambling. The country remains bullish on protecting local players from harm and combating gambling-related fraud.

The report outlines the results of the ongoing cooperation between the Spelinspektionen and the Finansinspektionen (Financial Supervisory Authority). Under the assignment, the two parties must evaluate how their joint effort can improve the sector and counter illegal gambling activities.

The operation was announced earlier this year and saw the government propose the provision of extra money to the regulators. Sweden is keen on exploring the opportunity of leveraging the Financial Supervisory Authority’s powers to crack down on black market gambling operations.

The collaboration, according to Financial Markets Minister Niklas Wykman, would allow the two regulators to identify unlicensed operators and block payments to and from such companies.

The Regulators’ Expertise and Powers Add Up

In its new update, the Spelinspektionen noted that the joint work between the two operators is likely to require them to share information about operators and their customers, so long as it contributes to the goal of cracking down on gambling-related fraud.

In its update, the two regulators also noted that offshore companies still often use Swedish payment service providers to interact with local consumers. The Spelinspektionen and the Financial Supervisory Authority have identified key areas they can work on to become more efficient in tackling the issue. This will notably include exploring opportunities to block payments to and from unlicensed companies.

The two regulators will complement their understanding with the Spelinspektionen backing the Financial Supervisory Authority with crucial gambling industry knowledge and the Financial Supervisory Authority providing insights into payment markets to the Spelinspektionen.

Sweden Recently Proposed Changes to Its Money Laundering Act

Sweden is considered a high-risk market in terms of money laundering and terrorism financing, according to a 2021 assessment. The unlicensed gambling market not only harms players but can also be easily used to launder money and commit financial fraud.

Speaking of money laundering, the Spelinspektionen recently responded to proposed changes to Sweden’s Money Laundering Act that would adjust penalties for AML violations. While the authority responded positively to the measure, it also noted several corrections that it believed would allow it to better regulate the market.

Around the same time, Sweden also unveiled its plans to pump up its gambling tax from 18% to 22% starting from July 1, 2024.