FinCrime Central - Latest AML/CFT News & Vendor Directory

Swedish Regulator Hits FDJ Subsidiary Spooniker with Major AML Penalty

spoonker fdj kindred aml penalty sweeden

On May 7, 2025, the Swedish Gambling Authority, Spelinspektionen, imposed a significant penalty of SEK 10 million (approximately £778,000) on Spooniker, a subsidiary of the French gambling giant FDJ United’s Kindred Group. This decision follows Spooniker’s failure to adhere to adequate anti-money laundering (AML) measures, putting the company under scrutiny for its inadequate customer due diligence practices. The penalty underscores the importance of robust compliance procedures in the gambling industry, particularly as regulators ramp up enforcement in response to increasing financial crime risks.

The Root Cause: Insufficient Customer Due Diligence

Spooniker, a previously independent brand under Kindred but now part of FDJ after its acquisition, has been accused of failing to implement sufficient customer due diligence (CDD) procedures. According to the Spelinspektionen statement, the company did not adequately trace the sources of funds passing through its systems. This lack of transparency potentially left the company vulnerable to exploitation by bad actors engaged in money laundering and terrorist financing activities.

The Swedish regulator stressed that Spooniker’s failure to determine whether its customers’ activities were legitimate or posed a risk of financial crime was a central issue in its decision to impose the fine. Such deficiencies in due diligence can have serious consequences for businesses in the financial and gambling sectors, both from a regulatory perspective and in terms of reputational damage.

Repeated Failures Trigger Heavier Penalties

While the penalty might appear substantial, it was issued in response to Spooniker’s history of non-compliance with AML regulations. The regulator found that Spooniker had a pattern of failing to address deficiencies identified in prior inspections, marking the fine as a consequence of repeated offences.

Spelinspektionen first flagged these deficiencies in 2022, prompting a follow-up inspection in 2024 to assess how Spooniker had responded to the initial concerns. Despite the company’s claims that it had made improvements, the follow-up inspection found that Spooniker had failed to meet the necessary standards. This reinforced the Swedish regulator’s decision to levy a penalty that reflects the seriousness of the violations.

Failure to Address High-Risk Customer Transactions

The regulator’s review of Spooniker’s customer transactions revealed significant concerns regarding the company’s risk classification procedures. Spelinspektionen reported that the operator failed to take sufficient measures when reviewing customers with unusually high deposit amounts. These customers were found to have made deposits totaling between SEK 620,000 and SEK 830,000, which exceeds the typical annual taxable income in Sweden. In most instances, Spooniker only collected basic taxable income information and did not conduct further investigations into these transactions despite the high amounts involved.

The failure to dig deeper into the origins of these large deposits could have allowed illicit actors to funnel illicit funds through Spooniker’s platforms. According to Spelinspektionen, this lack of action was a significant factor in determining the severity of the penalty.

Spooniker’s Response to the Findings

Following the review, Spooniker attempted to defend its procedures, arguing that its measures were in line with industry standards and the requirements of Swedish law. The company detailed its risk classification system, which included mandatory Bank-ID verification for all customers. However, despite these explanations, the Swedish regulator remained unconvinced, citing that the measures taken were insufficient to prevent potential money laundering risks.

The company’s failure to proactively address concerns raised by regulators in 2022 was particularly concerning, as it reflected a lack of urgency and a failure to act on past recommendations. This repeated non-compliance likely played a major role in the decision to impose such a severe penalty.

Spelinspektionen’s Final Statement

Spelinspektionen’s Director General, Camilla Rosenberg, underscored the seriousness of the violations in her concluding remarks, stating, “The deficiencies are serious and repeated. The Swedish Gambling Authority considers that the penalty fee is proportionate to the seriousness of the violations.”

This statement highlights the growing importance of AML compliance in the gambling industry, as regulators become more vigilant in enforcing rules designed to combat financial crime. The financial penalty imposed on Spooniker is a clear message to other gambling operators that regulators will not hesitate to impose heavy fines for repeated failures to comply with AML laws.

Conclusion: A Wake-Up Call for Gambling Operators

The penalty against Spooniker serves as a stark reminder for gambling operators to prioritize AML compliance and to take immediate steps to rectify any weaknesses in their customer due diligence processes. With increasing scrutiny from regulators and the growing threat of money laundering and terrorist financing, gambling operators must ensure that their risk assessment procedures are robust enough to identify and mitigate potential financial crime risks.

Failure to comply with AML regulations not only exposes companies to regulatory penalties but can also result in long-lasting damage to their reputation. The case of Spooniker reinforces the need for gambling companies to continuously evaluate and strengthen their compliance measures to ensure they meet the highest industry standards.