The internet is a wonderful place, right? It’s filled with all the information and entertainment you could possibly want at the click of a mouse. Thanks to online banking, you can buy anything you can imagine; you can access books, games, movies and more. And there’s the wonderful world of online casinos, where, any time of the day or night, you can participate in any game you’d ordinarily play in a brick-and-mortar casino – from live dealer baccarat to a myriad of slots – even if you’re not dressed.
Unfortunately, there is also a dark side to this widespread access and the anonymity that the internet so easily grants us. Identity theft, money laundering and fraud are rife, especially in places where money is found. And where better to find money than in online casinos?
This is why online casinos and other financial institutions have to comply with KYC – or know your customer – legislation.
Know your customer is a series of guidelines and laws that govern how financial and non-financial institutions (including online casinos) conduct business with their customers. Its primary purpose is to prevent money laundering and other types of financial fraud. It might mean you have to provide your ID document or some proof of address, or you might go through a biometric KYC process, such as facial recognition.
Money laundering is a method used by criminals and other unscrupulous individuals to ‘clean’ money that has been illegally obtained. There are hundreds of ways to do this, and many of them involve identity theft.
Identity theft occurs when an individual, group of people or company with doubtful integrity uses the personal identification information of another individual or group without their knowledge. This information is often used to access bank accounts, credit or debit card information, and transaction details. People have suffered devastating losses simply because someone knew their online banking password or was able to get their personal and financial information by underhanded means.
KYC comprises four key principles that each online casino has to adhere to:
By following procedures that enable them to identify accurately any person they are conducting financial transactions with – including deposits and withdrawals, allocation of bonuses and prizes, and any foreign exchange transaction – they can reduce identity theft and fraud. They also monitor the transactions for suspicious activity, like making large deposits and withdrawals without real playing, and various other red flags, to reduce money laundering.
KYC comprises four key principles that each online casino has to adhere to:
By following procedures that enable them to identify accurately any person they are conducting financial transactions with – including deposits and withdrawals, allocation of bonuses and prizes, and any foreign exchange transaction – they can reduce identity theft and fraud. They also monitor the transactions for suspicious activity, like making large deposits and withdrawals without real playing, and various other red flags, to reduce money laundering.
Some customers do find KYC requirements cumbersome and intrusive. However, avoiding KYC tends to be dodgy or even downright illegal, so it’s advisable that you always comply when divulging personal or financial information. KYC is as much for your protection as it is for the casino’s – it’s there to ensure your transactions are legal and fair and that your identity remains secure.
