Swedish Gambling Regulator warns of EU AML reform challenges

Spelinspektionen, Sweden’s gambling regulator, raised concerns about proposed changes to the country’s anti-money laundering (AML) legislation ahead of the introduction of new European Union requirements in July 2027. Overall, the regulator supports proposed changes and the government’s proposed changes, but warns that some of the measures could weaken its supervisory powers and increase pressure on its resources. The main concerns are connected to lottery supervision, access to information, enforcement measures, financial penalties and the funding needed to implement the new rules. Disagreement over lottery supervision Spelinspektionen is against the idea of being responsible for assessing the suitability of organisations running certain lotteries, which are currently registered with municipalities. As per the proposal, municipalities will keep controlling registrations of the lotteries, while Spelinspektionen will assess the applicants and supervise their activities. Spelinspektionen expressed fears that this division of responsibilities may lead to confusion over which party is entitled to collect the required information, oversee the changes and take enforcement measures. The authority does not agree with removing the possibility for controlling bodies to impose coercive fines on firms that should produce certain information or documentation. According to Spelinspektionen, coercive penalties serve a different purpose than coercive fines which are aimed at ensuring that information necessary for investigation is received by respective authorities. Spelinspektionen also called for clearer rules allowing it to inspect premises used by third-party companies providing services to gambling operators. It wants its inspection powers to cover these locations, rather than being limited to operators’ own offices. Questions over financial penalties and EU standards According to the bill, fines can reach 10% of a gambling operator’s turnover. Spelinspektionen supports this threshold, but raised concerns on whether this 10% will meet the expected standards for financial penalties set in development by the European Anti-Money Laundering Authority. Spelinspektionen will need additional SEK5 million in 2027, including SEK2 million for IT development. Additionally, starting from 2028, it will need SEK3 million annually for IT maintenance and additional staff. The authority also requested to keep existing exemptions from AML until the European Commission decides about new exemptions. It also proposed transitional provisions, aimed at delaying the termination of current exemptions until 10 July 2027. Sweden has not finalized the bill, and it is unclear whether the government will support the recommendations from the authority ahead of the July 2027 deadline.