Identity Verification for Online Casinos – the 2021 Guide

In 2017, the industry size of online gambling was $45 billion, which is expected to increase by $94 billion by 2024. In connection with such a sharp increase in applications and the increasingly large amounts of money passing through them, gambling and online contractions are subject to close scrutiny as well as banks and other financial organizations. As a major target of identity fraud, money laundering, and international monitors, regulators are increasingly asking online casinos and gambling companies to observe serious measures to prevent such illegal activities.

One of the main essential registration processes provided by the law to combat money laundering is considered to be "Know Your Own Customer". As a measure of character testing, online gambling online applications are required to identify and test customers to detect potentially dangerous users and track suspicious energy.

However, as the demand for online gambling increases, the strictness of complying with legal claims also increases. This not only means that it is necessary to take a huge team of experts on legal claim compliance to overcome the accumulated tasks, but also draws prolonged costs and waiting times for character testing procedures at online casinos. In this sense, manual KYC processing is irrelevant to casinos, time-consuming, budget-consuming and full of errors, resulting in unpleasant conclusions.

The advanced technology era has made it possible to get better conclusions for online casino personality tests. GetID applies the latest technology and adopts a multi-level architecture to ensure proper personality tests with minimal value, without any wasted waiting time. GetID's Omnikanal platform allows online casinos and gambling platforms to test customers without wasteful segments. This new generation of conclusions eliminates the need for large teams, countless verifier types, and unnecessary delays and costs to guarantee ratios. Instead, online game and casino providers can literally get personality tests instantly, without huge costs.

Want to admit more? This guide will explain in detail what information casino nobles actually need to answer claims and how Getid can draw the first conclusions to get a smoother access to the system.

What is KYC and ID Verification?

KYC is an abbreviation of Know Your Customer. The KYC process is used to confirm the identity of the user and is an essential part of the fight against money laundering (AML). When it comes to online gambling companies, these are sometimes called "strengthening due to dudelians." KYC is an essential account confirmation process to prevent financial crimes.

In other words, the KYC process is used to confirm that the customer is the person. Banks and financial institutions help prevent fraud, financial crimes, and money laundering. For online gambling operators, KYC is used for identity verification in the customer registration process, but this is not only a financial crime.

By identifying customers using information (PII) that can identify individuals (PII) and public identification, KYC helps to stop the flow of fraudulent funding through an online gambling company. In addition, the KYC procedure can help exclude a minor player, a user trying to play with multiple accounts, and gambling addicted on a sel f-exclusion list. This not only prevents the casino from being abused for criminal purposes, but also makes online gambling operators confused by malicious users and prevent money from losing funds.

The reason why KYC procedures are particularly important for online gambling operators is that money launding and terrorism are often made internationally. Online casinos are often played by players from multiple international jurisdictions, so strict precautions are required to prevent illegal acts from leaking over the borders.

What Does the Law Say?

As mentioned above, one of the most difficult aspects of online casino compliance is the fact that customers often register in international jurisdictions. Even though online casinos are registered in the United States, the users may come from the EU or the UK, which is much more restrictive than the United States.

Many online casino owners do not understand that these organizations are applicable to each user country, even if the gambling platform is registered in a gentle judicial jurisdiction. For example, Costa Rica, a hot spot of online gambling operators, has a very gentle gambling rule. Nevertheless, online casinos, which are based in Costa Rica and provide services to British customers, are eligible for strict AML and Kyc procedures applied to UK online casinos.

In this sense, online gambling online applications should be brought in conjunction with AML and KYC regulations set by the more serious jurisdictions around the world, such as the US, the UK and the EU.

USA

US online gambling establishments with total revenues of more than $1 million are in the category of non-banking financial institutions (NBFIs). This means that they are effectively obliged to hold the same regulations to warn of fraud, financial crimes and money laundering.

The Network to Eliminate Economic Cruelty (FINCEN) is responsible for monitoring AML compliance in line with the Bank Secrecy Act (BSA). In line with the ZBB, financial institutions are required to assist the government in detecting and preventing money laundering, identifying, pointing out and reporting certain suspicious activities and operations. FinCEN has filed this liability with the Internal Revenue Service (IRS) and confirmed compliance with the claims.

Proper online casino AML measures include the filing of a Statement of Operations (SAR) for extraordinary transactions of more than $5, 000 and a Statement of Operations for cash transactions of more than $10, 000. There are also very strict requirements for the processing and handling of revenue savings and the issuance of loans for the required amount exceeding $10. 000.

All these anti-money laundering measures are considered precarious, but online casinos in South America must first literally identify and inspect buyers who support the KYC process. Violation of this requirement will result in unimaginable fines. The South American Gambling Communication (AMA) updated its own standards a while ago. In line with the new rules, South American users have no chance of finding their account unless they provide important PII data, namely their absolute legal name, address and official insurance number. But in reality, this is even more fundamental, and you cannot perform a single operation with these funds without providing proof of official identity and an unaltered address.

It is important to indicate that the AMA standards apply to the actual cartridge, and not as a type of casino. In this sense, Mr. USA, who uses online casinos in other jurisdictions, must also provide this information. If the online gambling platform does not provide the appropriate measures, it may be at risk of non-compliance.

United Kingdom

In England, the Proceeds of Criminal Activities Act provides for very strict AML standards. However, England's requirement for KYC processes for organizations involved in online gambling is not only aimed at anti-money laundering. Visavi, England introduced challenging standards for KYC-processes for three main reasons. First, by face checking, KYC procedures help prevent non-adult gambling.

Secondly, KYC procedures are necessary to determine whether users have removed themselves from gambling. Voluntary self-exclusion programs allow people with gambling addiction to be placed on investigation lists so that casinos do not allow them as gambling. The KYC process requires that users on these lists not provide their accounts to be screened for addiction and found out.

Finally, character tests help detect potentially dangerous applicants who may borrow political positions or face financial penalties. This helps to protect against money laundering, terrorist financing and other financial atrocities.

It is indeed interesting that in England, a strict verification procedure known as "threshold verification" is in effect, which means that all users must undergo KYC when opening an account. If in other jurisdictions, KYC tests at casinos have the option of not being carried out until the stage of introducing a deposit or withdrawing funds, in England this process must be completed immediately.

European Union

The main legislative acts that determine the ratio of AML and KYC assertions of online casinos for users of EU countries are considered to be the EU's Fourth Directive on Money Laundering and the Prevention of Money Laundering Act (Malta).

These two directives determine the AML-politics related to the US and the UK, but are somewhat more tedious for KYC. In line with EU law, KYC-procedures do not come into effect until a player brings more than 2, 000 euros into his online casino account.

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The beginning of the work

Why is ID Verification So Important for Online Casinos?

Casinos often carry out rather large-scale fund operations. Online platforms for gambling and casinos have every chance to bag millions of dollars a day, and in fact, they are preparing the main targets for money laundering and financial cruelty. Apart from this, gambling Internet platforms do not have access to their own communications, so scammers can operate undetected on these websites.

KYC processes and personality tests are designed to reduce the risk of illegal work by identifying customers and testing the veracity of their personalities. This allows unbelievable personalities and potentially dangerous users to be noticed, tracked down and banned.

There are three main reasons why gambling online applications should think about it. Without an effective KYC policy, online casinos and gambling platforms risk money, various types of fraud, and huge fines for not complying with the requirements.

Anti-Money Laundering

Money laundering can have enormous economic and jurisdictional consequences. The influx of large amounts of illicit funds destabilizes the economy and leads to a fall in the value of the currency of each country. In this sense, money laundering not only finances the activities of criminal communities and terrorist organizations, but also affects entire national markets. According to predictions, 2-5% of the world's GDP is currently spent on money laundering, which amounts to between $800 billion and $2 trillion. This kind of incomprehensible amount could shake the foundations of the American economy.

Money laundering may seem like a top priority for banks and financial institutions, but studies have shown that casinos are the most suitable place for money laundering. In 2014, Finnish gambling operators filed more than 9. 000 money laundering reports, compared to only 1125 money laundering reports filed by Finnish banks in the same period. Even figures from five years ago show the seriousness of the problem and the need to improve regulatory measures and processes aimed at this determination. In addition, access to the Internet and pseudonymity (especially with the emergence of cryptocurrencies) exacerbate the problem.

According to the study, a criminal group called DOT. Consume has come together to "launder" funds, deliberately losing in games and demanding "pure" winnings. A striking example is the Corozzo network, active from 2005 to 2008. The network, consisting of 26 participants, was engaged in illegal gambling business and profit-making through four online gambling sites, the size of which exceeded 10 million dollars.

More recently, in 2016, CG Technology (a Kantar Gaming brand) was fined $22. 5 million by various regulators for poor AML security. The gambling company's lack of AML allowed 26 people known as "Jersey Boys" to launder large amounts of money in fraudulent bets through the platform.

Moreover, as technology evolves, the schemes are becoming more complex. Thanks to the rise of virtual credit cards, prepaid mobile loans, and alternative payment gateways such as PayPal, microding has become easier and much more discreet than ever before.

With strict KYC checks, casinos have reduced the risk of money laundering tools.

Fraud Prevention

Fraud in online gambling takes various forms and scale. Because there is no fac e-t o-face communication, catching scammers is a more difficult task. In the past, visitors to the actual store casino had to exchange cash and chips in the store. In the Internet gambling, there are many opportunities for users to introduce illegal funds to others or illegally pass them.

Theft of personal information is a major issue in online gambling. Users can get the details of the credit card illegally and use these payment methods to participate in the game using the funds of others. In addition, users can escape terrible losses by submitting fake documents or playing with others.

Probably one of the most dangerous misconduct for online casinos is mult i-account misconduct where users create fake accounts and end the game. Suppose that users have created five fake accounts and all five accounts have participated in poker games. If the four accounts are clearly losing, the fifth account will win. Online casinos can lose a lot of money due to such fraud.

Furthermore, fraud is not always done by ordinary suspects. The number of children who are gambling is also shocked. According to statistics, in the UK, 450. 000 children, 11 to 16, regularly play illegal gambling. I often use my parent's account as a personality certificate, and children quickly depend on casino games. According to statistics in 2008, about 47 % of users claiming to be the person were a teenager who stole the details of the parent's account.

Such fraud will make gambling companies lose millions of dollars. By introducing a strict personality check from the beginning, online casinos cannot be confirmed or verified data with a higher probability, so that they can identify and keep suspicious users. < SPAN> Introducing a strict KYC check has reduced the risk of money laundering tools.

Non-Compliance Fines

Fraud in online gambling takes various forms and scale. Because there is no fac e-t o-face communication, catching scammers is a more difficult task. In the past, visitors to the actual store casino had to exchange cash and chips in the store. In the Internet gambling, there are many opportunities for users to introduce illegal funds to others or illegally pass them.

Theft of personal information is a major issue in online gambling. Users can get the details of the credit card illegally and use these payment methods to participate in the game using the funds of others. In addition, users can escape terrible losses by submitting fake documents or playing with others.

Probably one of the most dangerous misconduct for online casinos is mult i-account misconduct where users create fake accounts and end the game. Suppose that users have created five fake accounts and all five accounts have participated in poker games. If the four accounts are clearly losing, the fifth account will win. Online casinos can lose a lot of money due to such fraud.

Furthermore, fraud is not always done by ordinary suspects. The number of children who are gambling is also shocked. According to statistics, in the UK, 450. 000 children, 11 to 16, regularly play illegal gambling. I often use my parent's account as a personality certificate, and children quickly depend on casino games. According to statistics in 2008, about 47 % of users claiming to be the person were a teenager who stole the details of the parent's account.

What Are Online Casino KYC Procedures?

Such fraud will make gambling companies lose millions of dollars. By introducing a strict personality check from the beginning, online casinos cannot be confirmed or verified data with a higher probability, so that they can identify and keep suspicious users. With strict KYC checks, casinos have reduced the risk of money laundering tools.

Fraud in online gambling takes various forms and scale. Because there is no fac e-t o-face communication, catching scammers is a more difficult task. In the past, visitors to the actual store casino had to exchange cash and chips in the store. In the Internet gambling, there are many opportunities for users to introduce illegal funds to others or illegally pass them.

Theft of personal information is a major issue in online gambling. Users can get the details of the credit card illegally and use these payment methods to participate in the game using the funds of others. In addition, users can escape terrible losses by submitting fake documents or playing with others.

Probably one of the most dangerous misconduct for online casinos is mult i-account misconduct where users create fake accounts and end the game. Suppose that users have created five fake accounts and all five accounts have participated in poker games. If the four accounts are clearly losing, the fifth account will win. Online casinos can lose a lot of money due to such fraud.

Furthermore, fraud is not always done by ordinary suspects. The number of children who are gambling is also shocked. According to statistics, in the UK, 450. 000 children, 11 to 16, regularly play illegal gambling. I often use my parent's account as a personality certificate, and children quickly depend on casino games. According to statistics in 2008, about 47 % of users claiming to be the person were a teenager who stole the details of the parent's account.

Such fraud will make gambling companies lose millions of dollars. By introducing a strict personality check from the beginning, online casinos cannot be confirmed or verified data with a higher probability, so that they can identify and keep suspicious users.

In addition to the devastating impact of money laundering and fraud, online casinos must consider the importance of the necessary ID testing procedures to remain conscious of increasing compliance with legal requirements. To put a stop to the rapidly emerging problems in the online gambling industry, regulators have taken strict measures, often imposing incredible fines on gambling businesses that do not comply with the law.

Last year, regulators fined gambling companies in England alone $25. 6 million for violating anti-money laundering and self-exclusion policies. Of these fines, a whopping $9. 2 million was imposed on online casino Daub Alderney for insufficient measures to prevent problem gamblers from gambling and ineffective AML policies.

Paddy Power Betfair (now renamed Flutter Entertainment) was fined approximately $2. 9 million for lax anti-money laundering measures, while Casumo was ordered to pay $7. 6 million.

What Do Casinos Need to Verify Identity?

Last year in the United States, online gambling site DraftKings was fined for allowing 54 gamblers to place bets. 13 of the 54 were 28. The New Jersey Gaming Enforcement Division imposed a large fine for insufficient identity testing.

Despite these heavy fines, studies have shown that more than 14% of online gambling casinos still have no self-exclusion verification measures in place, and unverified casinos are rampant.

Know Your Customer procedures are considered an essential part of anti-money laundering laws. Regulatory guidance varies by jurisdiction, but the general meaning is to identify purchasers, literally inspect this information for accuracy, and constantly predict transactions and behavior.

FinCEN's latest guidelines outline the main procedures that online casinos should use to stay compliant with the BSE. These include independent compliance testing to assess the money laundering risk of each product offered, as well as procedures to identify and test all buyers using official documentation and PII. Additionally, online casinos will need to assign a specific person or people to ensure daily ratios and record keeping, and spend time and money on staff research on ratio tasks.

• Furthermore, according to the EU rules, an organization specializing in online gambling is special for "identifying purchasers and confirming their identity based on documents, data or information obtained from a trusted independent source of information." We must pay attention to the British regulatory authorities, and online casinos must make every effort to "ensure the buyer's identity using additional documents, data or information". I am.
• The normal procedure to confirm the identity of the buyer is to submit the purchaser's personal information and public documents that support it. The online gambling platform is required to send these documents to an official autonomous external verification agency, and the external verification agency verifies the genuine documents and compares large amounts of databases and information. Thus, external verification agencies can get any opportunity to prove that the buyer is considered the person.
• Along with the recently enhanced rules, thir d-party verification agencies still link customer data to the sel f-exclusion list to prevent access to casinos when gamblin g-addicted patients are voluntarily eliminated. It is required.
• The documents and information required to identify and confirm customers are not standardized. Nevertheless, most regulatory organizations around the world provide lists of documents that can be used for identity verification.
• The types of documents used for confirmation are divided into two types: standard identification documents and standard address confirmation documents.
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PA N-Card

• Space} Personality certificate of voter;
• Passbook (if there is a photo);
• Space｝ Employee identification certificate (only for companies registered on a stock exchange or company belonging to public sector);
• Space} University ID card
• Space} Birth Certificate (although the user usually needs to submit a face photo along with this certificate, and also needs to submit another identification certificate).
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What Are the Problems of ID Verification for Casinos?

Space｝ Public Price account, ｛Space｝ Council maintenance tax account;

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Bank balance certificate

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Space} HM REVENUE AND CUSTOMS SELF-SSSSSSSING STATMENT

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Housing insurance or car insurance certificate

How Does GetID’s Automated ID Verification Improve KYC for Casinos?

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Documents at home

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Space} Leasing agreement and 3 month lease fee receipt.

Handle verification and KYC procedures are tim e-consuming, troublesome, and inconvenient. If the required documents are not standardized, the data required depending on the institution, and the user may be damaged because the user must provide many data. This is to not only generate security threats to provide confidential data to many different gambling institutions, but also switch to users to refuse the use of applications and switch them to no n-legal sites that do not require authentication. Also connected. Increasing demand for online gambling services means that the KYC test becomes more and more common. As a result, a large number of unexpected authentication applications occur, and in some cases it takes more than a week to approve the KYC.

It is likely to be seen as more challenging due to the increased costs of responding to claims. Almost all online casinos are now classified as non-bank financial institutions and are subject to stricter compliance standards. This means that gaming establishments now have to employ expensive anti-fraud teams and compliance officers to ensure that KYC and AML procedures are implemented and followed. In addition, gaming establishments must have an employee (or a team, depending on the size of the establishment) on staff to report money laundering or risk prosecution.

Related to this, a report states that in the past five years, 68% of online gambling companies have had to increase their budget for AML and KYC. On average, these companies are spending 74% more to meet regulatory requirements. Given these figures, 65% of online casinos said they will increase their compliance budget by at least 13% on average in the next few years.

Conclusion

Furthermore, providing confidential data to a large number of external verifiers makes this information vulnerable to criminals. With such a large amount of data turning over every day, this information is prone to identity theft. Also, because external verifiers are only human, they are often lied to with fake documents and fraudulent information.

Moreover, the cross-border nature of online gambling means that players come from different countries. While external verifiers may well have the resources to test players from the US or the UK, operators may not have enough resources to accurately test documents that identify people from other countries. In such cases, it is quite possible that high-risk users will jump the network.

Moreover, due to the lack of standardization between regulators, online casinos cannot be sure that they comply with all the requirements. At a basic level, it may not be easy for EU casinos to qualify when following the steps to carry out KYC tests. Does EU law require identity tests starting from 2. 000 euros, or does the more stringent UK law require KYC checks at account opening? Given such high penalties, online gambling operators may be confused.

But what does this mean for online casinos and personality tests? These numbers indicate that manual KYC processing for online gambling does not scale because it does not scale. The more users registered on the online gambling site, the more expensive and the slower the personality test procedure. From this point, it is necessary to develop a more effective and efficient solution for confirmation of KYC and to ensure difficulties during registration.

GETID offers new generation KYC solutions based on advanced technology. GETID offers universal solutions to simplify the KYC process to reduce the narrow gate in the person's confirmation and age confirmation procedures.