TSG Interactive Fined in Sweden Over Anti-Money Laundering Failures

Regulator Reviews Customer Due Diligence

In May 2024, Spelinspektionen launched a review of TSG Interactive’s AML compliance. The regulator focused on how the company handled customer due diligence in 2023. Inspectors analyzed the profiles of ten customers aged 18–29 who made the largest deposits that year.

TSG rated all new customers as medium risk by default. The company used automated systems to update scores based on player behavior. However, the regulator found these updates lacked depth and flexibility. In several cases, TSG failed to apply enhanced due diligence (EDD) quickly, despite large transactions from young customers.

Spelinspektionen noted, “TSG has not made adequate assumptions about the purpose and nature of customer relationships and has not followed up on these relationships appropriately.” This delay reduced the company’s ability to detect suspicious activity.

Internal Thresholds Criticized

TSG set internal thresholds of USD 20,000 for single deposits and USD 40,000 in net deposits over a year to trigger source-of-funds checks. Spelinspektionen said these limits were too high and allowed risky activity to go unchecked. The regulator also criticized the use of net deposits (deposits minus withdrawals), warning that it made it easier to bypass AML controls.

“Such practices could allow customers to deposit and withdraw substantial amounts repeatedly without triggering any enhanced due diligence,” the report stated.

The investigation found that TSG often failed to carry out EDD, even for high-deposit customers. In one case, a customer deposited SEK 267,000 over four months without facing immediate restrictions. In another, the company collected documents but did not explain how they related to a risk assessment or why they were relevant.

Poker Winnings Argument Rejected

TSG claimed that some customers used winnings, especially from poker, to fund large deposits. The regulator rejected this claim. “Payouts from the operator cannot automatically verify the source of subsequent deposits. Without supporting evidence, these claims remain unsubstantiated,” it said.

Spelinspektionen found that TSG failed to comply with several sections of the AML Act. These included customer profiling, transaction monitoring, and recordkeeping. The regulator criticized TSG for relying on high financial thresholds and for what it called “a passive approach to AML risk.”

The agency fined TSG SEK 7 million and issued a formal warning. It chose not to revoke the company’s license but expects improvements.