Kindred’s Spooniker Fined SEK 10 Million Over Repeated Due Diligence Failures
Sweden’s gambling regulator has imposed a significant financial penalty on Spooniker, a subsidiary of Kindred Group, citing serious shortcomings in customer verification procedures and concerns over repeated compliance violations.
Penalty for Due Diligence Breaches
Spelinspektionen, the Swedish Gambling Authority, has fined Spooniker SEK 10 million (approximately €920,000) for failing to carry out adequate customer due diligence. The regulator stated that the operator did not sufficiently verify the sources of customer funds, thereby increasing the risk of money laundering and other financial crimes.
This enforcement action follows a broader compliance review triggered by deficiencies identified in 2022. Spelinspektionen made clear that the size of the penalty reflects not only the gravity of the current breaches but also Spooniker’s prior regulatory history.
Inadequate Verification Despite High Deposits
Spelinspektionen concluded that Spooniker had not carried out adequate checks to determine whether customer activity was legitimate or posed a risk of money laundering or terrorist financing. The regulator found that despite high-value deposits, the operator did not perform sufficient verification of customers’ sources of funds. In its investigation, it identified customers who had deposited between SEK 620,000 and SEK 830,000 during the review period, in some cases exceeding their entire annual taxable income by as much as SEK 340,000.
The regulator noted that aside from a single instance where income data was gathered, Spooniker failed to apply any further measures for those customers. This, according to Spelinspektionen, demonstrated a lack of effective risk-based procedures and left the operator unable to assess whether transactions were legitimate.
Regulatory History Contributes to Penalty Size
In 2022, Spelinspektionen had already flagged similar shortcomings in Spooniker’s procedures. Those earlier concerns led to the most recent review. The regulator stated that the repeated nature of the failings contributed to the size of the fine.
Spooniker defended its process by highlighting its use of Bank-ID, Sweden’s electronic identity system. It also claimed that its internal checks met initial regulatory expectations. However, the regulator determined that these steps did not go far enough. Spooniker failed to assess whether customer activity matched their income or risk level.