LeoVegas, a Sweden-based iGaming operator has reportedly been fined approximately 238,100 dollars as a penalty for a reported breach of customer due diligence protocols linked to rules guiding anti-money laundering in the country. The prominent Stockholm-headquartered company disclosed its intention to appeal the Spelinspektionen regulator’s decision through an official press release.
The fine was imposed on LeoVegas because of its supposed inadequacies in 2019 when it first opened its market. In its own defense, LeoVegas proclaimed that it is developing its policies to guarantee compliance. It also mentioned that it has already updated and changed its customer due diligence protocols before the Spelinspektionen regulator initiated its investigation.
Leovegas AB Has A Narrow Look
LeoVegas AB boasts many iGaming sites such as 21.co.uk, Bingos.co.uk, SlotBoss.co.uk, BetUK.com, LeoVegas.com, and RoyalPanda.com. The firm also launched its LiveCasino.com and GoGoCasino.com last summer and made them available to lovers of online casinos in neighboring Finland. LeoVegas stated that so far the Spelinspektionen regulator has only reviewed its 2019 routines which is why it is appealing to allow a court to review the issue and further guide the entire industry on how best to interpret the current regulations.
A statement from LeoVegas AB reads
The company is subjected to several reviews and audits each year by external authorities and local supervisory authorities. Our top priority at LeoVegas is compliance and we do everything possible to achieve it. We are growing continually in this area so that we can meet the requirements set by the company itself and the regulators alike on its operations.’
Disclosure of Rules and Regulations
The Spelinspektionen disclosed in its official sanction that to stop legitimate businesses from being exploited to finance terrorism and launder money, it set rules that put a high demand on licensed gaming operators. The regulator further pronounced that its protocols are embedded in a risk-based approach to compel iGaming firms to take proactive measures that are proportionate to the risks they are exposed to.
LeoVegas AB Charged with Illegal Insecurity
The Spelinspektionen also declared that the law requires licensed iGaming companies to identify their customers and ensure that they find out enough info so that they can adequately manage and assess any associated risk. It further revealed that LeoVegas AB did not operate in line with the risk-based policy placed on ground. The risk-based policies oblige firms to initiate more inclusive measures for their customer awareness in case the danger measure reaches an elevated level.
A statement from the Spelinspektionen reads
‘LeoVegas AB failed in its work on the risk classification of customers and customer knowledge and also in the documentation for the measure it had taken. This inaction has caused significant risks that the firm may have been used to finance terrorism and launder money. This is considered very serious’.