Trustly has emphasised that it is pleased to have clarity over the AML case involving the Swedish gaming regulator, Spelinspektionen and the Finansinspektionen (FI).
The case, which centred around allegations of AML shortcomings, saw Trustly given a warning and a penalty fee of SEK 130m (£10.18m) following an investigation by the financial regulators.
During the investigation, the FI disclosed that the company had not complied with key parts of the money laundering regulation.
Shortcomings were said to have been found across its general risk assessment, risk classification of customers, routines and guidelines for customer knowledge, measures for customer knowledge and monitoring of customers.
“The shortcomings, which have been serious, have been found in Trustly’s largest business area, the gaming industry, which is associated with a high risk of money laundering and terrorist financing,” an FI statement read.
“The risk that Trustly and the financial system could have been used for money laundering and terrorist financing has therefore increased.”
“Trustly has a special exposure to the gaming industry and through its unique overall perspective, the company can see its customers’ collective transactions to various gaming companies.”
Johan Tjärnberg, CEO of Trustly, responded to the case: “It is good that we now have clarity on the issue of who the SFSA believes we should treat as a customer. Trustly will always strive to fully comply with both the applicable regulatory framework and our own high standards, and takes the SFSA’s decision very seriously.
“In November 2021, we started to adapt our services based on the preliminary assessment from the SFSA regarding the end-user issue.
“We also deeply value our relationships with merchants, banks and other stakeholders and will continue to engage in an active dialogue with several of them to further explain our undertaken and planned actions in the fight against money laundering and terrorist financing, and how we ensure that Trustly remains the most trusted and secure platform for digital account-to-account transactions.
He added: “Our market-leading technology enables a better experience for the end customer, higher conversion and lower costs for the merchant, while ensuring our service does not contribute to increased consumer debt. Overall, we remain well positioned in a payment services market that is rapidly transforming towards real-time payments.”