BOS claims Swedish banks have severed ties with operators

Gustaf Hoffstedt, secretary basic of Swedish commerce affiliation Branscheforenigen för Onlinespel (BOS), claims that all the nation’s main banking establishments have suspended providers they supply to licensed playing operators.

The commerce physique stated that “all main Nordic banks” – together with SEB, Swedbank, Nordea, Handelsbanken, DNB Nor and Danske Financial institution – stopped offering providers to Swedish-licensed playing operators in some unspecified time in the future this 12 months.

Claiming that is in violation of Swedish regulation, Hoffstedt has filed a criticism to the nation’s Monetary Supervisory Authority (Finansinspektionen).

Most of those banks, Hoffstedt stated, cited inner threat assessments or Sweden’s Anti-Cash Laundering Act (PTL) as the explanations for account closures. The BOS secretary basic added that “ in some circumstances the banks haven’t acknowledged any motive in any respect”.

Gustaf Hoffstedt

“So far as I’m conscious, no concrete justification for the dismissals and banks’ evaluation has been supplied in any case,” Hoffstedt (pictured) stated.

Hoffstedt added that playing operators can’t operate with out banking providers.

“On-line playing corporations are, as acknowledged above, depending on fundamental monetary infrastructure in

the type of banking and fee providers to conduct their enterprise,” he defined. “This requires [them] to have the ability to retailer prospects’ funds in addition to obtain deposits and make funds to prospects.”

He added that the suspension of providers meant that operators might not use Financial institution-ID, used to confirm gamers’ identities. This meant they’d misplaced entry to a instrument that was very important for combating fraud and cash laundering, Hoffstedt. 

“With out entry to the Financial institution-ID system, on-line playing corporations want to make use of various options to establish their prospects,” he defined. “These options threat being neither as efficient for corporations nor as protected for customers.”

Swedish Banks additionally present the Swish fee service, which Hoffstedt stated was additionally “essential” for operators.

Hoffstedt stated that the banks’ choices had worsened working circumstances for the nation’s igaming licensees, in addition to counteracting the targets of the Playing Act.

He went so far as arguing that the actions have been unlawful.

Hoffstedt stated banks have a contractual obligation to proceed to offer banking providers to those prospects, except there’s a clear motive to interrupt this settlement. Solely in incidents the place persevering with to offer banking providers would violate the PTL, or if the banking buyer had dedicated misconduct, might agreements be damaged, he claimed.

Whereas Hoffstedt famous that banks could terminate agreements if they believe a buyer has connections to cash laundering, he identified the PTL made clear that these assessments are on the buyer degree. They’ll subsequently not be utilized on a sweeping foundation to a authorized business.

“On condition that a big proportion of BOS members additionally acquired discover or discover of termination from the banks – all with basic and overarching references to the chance of cash laundering within the enterprise – it appears apparent that the idea for the dismissals is a basic enterprise coverage choice somewhat than a legitimate software of PTL,” he stated.

“Beneath these circumstances, there is no such thing as a chance for the banks to deviate from their contractual obligation.”

BOS requested a dialogue with the Monetary Supervisory Authority and stated the regulator “ought to provoke a supervisory investigation of the banks’ dealing with and presumably intervene in opposition to the banks”.

It follows the Swedish police warning that playing is at its “highest risk degree” of cash laundering within the nation’s Nationwide Threat Evaluation of Cash Laundering and Terrorist Financing report earlier right now (21 April).
The report, which was compiled from findings by Sweden’s Coordination Perform In opposition to Cash Laundering and Terrorist Financing group, organised by the police authority, stated playing companies are sometimes unknowingly “in danger” of cash laundering exploitation.

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