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Casino Cosmopol accepts SEK2m penalty for AML failings

| By iGB Editorial Team
Casino Cosmopol will pay a SEK2m (£154,000/€180,000/$200,000) penalty for anti-money laundering (AML) failings following a probe by Swedish regulator Spelinspektionen.
Casino Cosmopol

The gambling watchdog also handed a warning to the Swedish land-based casino brand of Svenska Spel.

According to Spelinspektionen, Casino Cosmopol “failed in its work with customer knowledge in several areas”. The regulator launched its investigation in November 2021 with a particular focus on the brand’s AML customer awareness efforts.

The probe also followed up on “previous shortcomings regarding certain requirements in the Money Laundering Act”.

Sanctions for Casino Cosmopol

The company responded to the news by accepting the sanctions, but underlined the historic nature of the issues. The brand added that its current AML measures comply with requirements.

“Casino Cosmopol accepts the criticism,” the brand said.

“As the Gambling Inspectorate states in its decision, during and after the supervision period, Casino Cosmopol implemented improvement measures. The Swedish Gaming Authority also assesses that Casino Cosmopol will be able to comply with the regulations going forward.”

The brand’s measures now include player registration for gaming machines and tables, as well as lower gambling thresholds for interventions.

Improved measures

It is understood the company has also improved system support for recording and monitoring transactions.

Additionally, there is now “in-depth money laundering training” for staff and more dedicated staff for follow-ups and monitoring.

“We have high ambitions for our work and have implemented new comprehensive tools and routines,” CEO Ola Enquist said.

“[In terms of] shortcomings [that] have not already been remedied, we will take care of them.

“Money laundering is a serious social problem that must be combated in every way. We will now go through and carefully analyse the Gambling Authority’s decision.”

AML costs

Increased costs related to social responsibility and AML measures were cited as a reason for Casino Cosmopol’s increased Q3 losses.

Svenska Spel’s Casino Cosmopol and Vegas slots verticals generated a collective SEK35m quarterly net loss. This was SEK22m greater than the corresponding quarter in the previous year. Across the two areas net gaming revenue decreased by 11% to SEK247m.

Svenska Spel introduced new opening times at Casino Cosmopol properties in October to counter competition from restaurant casinos.

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