KYC Process – Know Your Customer

What is KYC?

KYC (Know Your Customer) is a legal and mandatory requirement, for financial institutions, payment processors and providers as well as online gambling sites. The main purpose of KYC in online gambling is to ensure that the players are who they say they are, by checking valid documentation such as their IDs.

The KYC process is also designed to deter underage gambling and criminal organisations from laundering their ill-gotten money and fraud.

There are three main components to the KYC processes, namely the Customer Identification Program, the Customer Due Diligence and Continous Monitoring.

The Customer Identification Program (CIP)( is when the online casino requests your documents as proof of who you are. The casino establishes the legitimacy of the documents. You may be requested to submit proof of identity, address and financial statement.

To prove your identity, you can submit proof of your passport, identity card or driver’s licence among others. On the other hand, as proof of address, you may submit a recent utility bill that is no more than three months old.

Some online casinos may also request that you submit a financial statement, to make sure that you are gambling with money that belongs to you and are not playing beyond your financial means.

If you are a specific kind of gambler, then the Customer Due Diligence (CDD) comes into play. The CCD is a requirement that is designed to evaluate risk assessments of players and their transactions. Players are generally assigned a risk rating following the evaluation, which essentially indicates to the casino how often they should monitor the account.

The CCD can generally entail a simplified, basic customer due diligence or an enhanced process.

The Continous Monitoring (CM) process is also an essential part of the KYC process. It is designed to reduce risk as much as possible, where any suspicious transaction is immediately flagged.

When are KYC Processes Run?

In the UK, the KYC process kicks off from the moment the player registers for an account. There is usually an automated system, whereby the information supplied during the registration process is compared to the electoral database for account verification. In the case that the system is unable to verify some facts, players will be contacted by the casino’s team to submit all the necessary documentation.

In other countries, the KYC process generally takes place when the player requests a withdrawal for the first time though some checks may also take place during the registration process.

Generally, KYC procedures take place whenever there is a new player sign-up, unusual account activity and transactions, changes in occupations and player behaviour.

Multiple Player Accounts and KYC

If you have more than one online casino account, chances are that you will be requested to undergo the KYC verification every time. While this is a cumbersome process for you, the casinos have a legal obligation to verify the identity of the player and to safeguard against any potential identity theft and criminal activity.

If you are concerned about your data-sensitive information landing in the wrong hands, you can rest assured that your information can never be passed on to any third parties, except in the case of any suspicious activity, in which case, that would be reported to the relevant authorities.

As a player, you must ensure that you sign up for an account at a safe and licensed online casino. Not only will you be provided with a fair gaming session, but you will also make sure that this data-sensitive information provided during the KYC procedures does not fall into the wrong hands. At the end of the day, you won’t want your financial information available to any potentially rogue criminals.

Difference Between Know Your Customer and Anti-Money Laundering

The KYC process is generally in place to prevent any sort of criminal activity, such as fraud and to establish any potential risk factors that can potentially come with all player accounts. On the other hand, AML legislation is designed to prevent money laundering and any potential terrorism financing. The legislation can vary significantly from one jurisdiction to another.

Both the KYC and the AML processes are mandatory requirements designed to verify the identity of the players.

Why Online Casinos Need KYC

Online casinos are required by law to collect certain information about their customers to verify their identities. This process is crucial in preventing fraudulent activities, ensuring a safe gaming environment, and maintaining the integrity of the online gaming industry. Here is a more in-depth look at why these procedures are necessary:

Legal Compliance

The primary reason online casinos conduct KYC checks is to comply with legal requirements. Various jurisdictions globally, such as the United Kingdom, Malta, Gibraltar, and others where many online casinos are registered, require licensed online casinos to verify the identity of their players. This verification process helps ensure that only those of legal gambling age participate in online gaming.

Anti-Fraud Measures

The KYC process is a fundamental measure in preventing fraudulent activities. By thoroughly checking a player’s identity, online casinos can prevent instances of identity theft and fraud. This process aids in ensuring that each player uses only their financial details, thereby limiting opportunities for fraudulent transactions.

Anti-Money Laundering (AML) Compliance

KYC procedures also play a significant role in preventing money laundering. Money laundering involves making illegally-gained proceeds appear legal, which is a significant concern for financial and gambling regulators worldwide. By verifying customers’ identities and tracking their transactions, online casinos can detect patterns indicative of money laundering and take appropriate action.

Promotion of Responsible Gambling

KYC procedures are integral to the promotion of responsible gambling. By ensuring that a player is of legal age and using their financial details, online casinos can monitor and manage potential gambling addiction issues more effectively.

Ensuring a Safe Gaming Environment

Ultimately, the KYC process ensures a safer and fairer gaming environment for all players. With these checks in place, players can feel confident that they are gambling in a secure and regulated setting where their rights are protected.

What Information Online Casinos Might Need

While the specific documents required may vary between casinos, they generally include:

1. Proof of Identity: This could be a valid passport, driving license, or government-issued ID card.
2. Proof of Address: Online casinos often ask for a recent utility bill, bank statement, or official government correspondence. This document should be dated within the last three months and clearly display your registered address.
3. Proof of Payment Method: Depending on your chosen method, casinos might request a copy of your credit/debit card (with the middle eight numbers on the card’s front and the CVV on the back obscured), a screenshot of your e-wallet, or a recent bank statement.

How to Submit Documents

After registering with an online casino, you will receive instructions on how to submit these documents via email. Make sure all the documents are clear, legible, and the necessary details are visible.

Data Security

Online casinos are committed to protecting your personal information. They have stringent security measures in place to ensure your documents are stored safely. These data protection measures align with international data protection regulations.

Non-compliance

Failure to comply with the KYC process at online casinos may result in restrictions on your account. These could include limitations on deposits, withdrawals, and access to certain games and promotions.

Remember, online casinos reserve the right to request additional information or documents at any point to fulfill their legal and regulatory obligations.

Understanding the KYC process is an important aspect of a smooth and secure online gaming experience. Should you have any questions or concerns about this process, feel free to reach out to the customer support team of the specific online casino or contact us for general inquiries.

How to Speed Up the KYC Process

Since there are many online casinos available on the market, chances are that experienced players have undergone KYC procedures several times over. While the process may differ slightly, one of the contention for most players is the delay in the casino account verification process.

We recommend that all the necessary documentation is submitted as soon as you sign up for an account, provided you are planning on playing at the same casino long term. Here are the documents that are likely to be requested by the casino:

• Proof of Identity
• Proof of Address/Residence
• Proof of Payment Method

Proof of Identity

You must prove who you are by submitting a photo of your identity card, passport or driver’s licence. To ensure that the process runs as smoothly as possible, make sure that all the information on these documents is legible. Do not try to manipulate the picture or alter any information.

Proof of Address

The online gambling site will also require proof of address, so it can verify that you live where you say you do. This information should match precisely that provided during the registration process.

As proof of address, you can submit copies of your utility bills, credit card statements or bank statements. Your name and your address should be clearly presented on these documents.

Proof of Payment Method

The majority of prominent online casinos accept various payment methods, such as bank debit and credit cards, e-wallet options and bank transfers. You must be able to verify that you are the owner of such payment methods.

• Debit or Credit Cards: To verify your card payment, you must show your bank account number by showing only the first 6 and 4 digits on the card, your name as well as your expiry date. Any other information can be covered. This would include your CVC code.
• E-Wallets: If you prefer to make deposits with e-wallet options such as Neteller, Skrill or Payz, you must submit a screenshot, showing your email, name and account number.
• Bank transfer: For a bank transfer deposit, you must submit your bank statement, which shows the casino deposit, your name and account details.

KYC Procedures – Conclusion

Many players can attest that KYC procedures can put a damper on their online gambling experience especially when it comes to cashing out their winnings. While this may be the case, it is a necessary evil that is designed to safeguard you from any potential fraud or criminal activity.

At the end of the day, online casinos are required by law to request these documents and information to fulfil their legal and regulatory obligations.

Understanding the KYC processes and why they are there in the first place, should put your mind to rest that your information will never be compromised. Ensuring that you sign up for an account at a licensed and regulated online casino will ensure a smooth and secure online gambling experience.

If you have any questions or queries, you will be pleased to know that the customer support team is readily available to assist you in any way possible.