Know Your Customer (KYC) Procedures on Casino Sites are as Strict as at Many Financial Institutions

The birth and subsequent growth of the online casino industry has come at such a rate that at times it feels that people are struggling to keep up. Like a horse that bolted in 1998 and doesn’t seem to be getting tired. It’s vital to the future of the industry that he is caught, harnessed and broken in before he is released again and more closely watched.

We’re talking about regulations that all financial institutions need to abide by, in particular the new trend of KYC procedures. All this extra documentation, red-tape and paperwork that is frustrating players and holding up our winnings. What is the deal with KYC and why do we have to do it?

What is KYC?

Know Your Customer is basically about the EU in particular, improving their online security with a focus on Anti-Money Laundering (AML). Knowing who your customers are, where they are getting their money from and really ensuring that everything is above board to snuffle out the criminals.

As everything online is becoming more streamlined and common, everything is suddenly a lot more anonymous. This anonymity is the ideal scenario for criminal activity and those looking to deal within the cracks of the law.

Businesses like online casinos became targets for money laundering in the early 2000’s as money could be deposited and withdrawn quickly with very little betting in-between.

This was very detrimental to the industry, tarnishing its reputation but also forced everything into the limelight. This gave birth to the online casino license as a result and now further security checks are ensuring this strictly regulated industry is tightened some more.

What Information is Required?

The latest regulations were released in December of 2020 and the deadline for enforcement is June 2021. This requires that online regulators, the ones that give the casinos their license, push casinos to submit proof of identification and jurisdiction. So, you will need to upload a copy of your ID (passport or other official document) and sometimes a selfie as proof you are you. A utility bill is proof of where you live and therefore what regulations apply to your jurisdiction.

As you continue to gamble, once your cumulative deposits and/or withdrawals reach $2,000 or equivalent, you may then be asked for proof of funds ownership. Confirmation that you’re playing with your money and not someone else’s. A part-blacked out credit card or bank statement is common, or a screenshot of your online banking method. You don’t have to disclose all the information, just enough to prove everything is legit.

Why is This Needed?

Firstly, it’s the requirements of the state, and they enforce the regulations on the casino. It’s not their choice, they’re just doing their bit for safety. Among others, it prevents:

– Under-age gambling
– Failure to meet local regulations
– Money laundering
– Online fraud

It’s about making the internet safer for the consumers by shutting out the criminal activity. It’s a good thing, you just need to be organised and ahead of the ball, so it doesn’t hold up your withdrawal. The main documents that we discussed above can be uploaded very quickly by taking photos on your smartphone and sending them to the relevant customer support team. It literally takes a minute to complete.

Is it Safe to Give This Information?

Not only will casino sites become safer due to all of this, but online service providers will also be required to keep their encryption software up to date to receive all these new documents. So it’s actually working as a win-win for players.

Online casinos now need to have the latest SSL encryption software to ensure that any information received is completely scrambled to prevent fraud. It’s a requirement of their license. So as long as you are only using tested and trusted casinos, you have no reason to worry.

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