The AML (Anti-Money Laundering) is a regulation that aims to combat money laundering and terrorist financing. It applies to many industries and is essential for gaming operations. Implementing AML compliance measures is essential to ensure the integrity and security of financial transactions on platforms.
Increasingly, online betting is heavily scrutinized and subject to various laws and regulations such as the AML. Unfortunately, money laundering is a serious problem in all parts of the world, and betting sites are vulnerable to this type of activity, as they involve large sums of money and allow anonymous financial transactions to take place.
Therefore, if you have a gaming operation, having policies and procedures in place to identify and report suspicious activity is critical to the success of your business. Verifying the identity of your customers and monitoring financial transactions to prevent illegal activities is essential.
What are the most important procedures involving the AML?
Online operations must develop their own compliance programs aimed at preventing fraud. Such initiatives should define how the company detects, analyzes and reports criminal incidents, money laundering and fraud attempts.
In reality, there is no one-size-fits-all compliance regime. Therefore, each operation must identify its needs, developing a set of measures according to the specificities of the business.
Some aspects are very important for the creation of an AML compliance program. Let's meet some of them:
Customer Due Diligence (CDD)
In free translation, it would be “Customer Due Diligence”. This process involves collecting basic customer information such as name, address, date of birth and verifying it through reliable sources. Sites also need to verify users against databases, identifying politically exposed persons, and other requirements.
Enhanced Due Diligence (EDD)
“Enhanced Due Diligence” is a more sophisticated check required when a customer poses a high risk of money laundering. EDD includes verification of source of funds documents such as debit cards, credit cards, bank statements, savings accounts, recent paychecks, etc.
Reporting of fraud
It is critical that operators always flag known or suspected cases of money laundering or terrorist financing. Furthermore, we must be aware that there is no minimum financial limit to set up this type of activity.
Employees training
If your team isn't fully aware of AML-related warning signs, even automated prevention tools won't cut it.
Therefore, your operation must provide the necessary training for compliance officers, such as refresher courses and others. Teams should also be aware of other general requirements as well as case-specific risk tolerances.
Permanent customer follow-up
Monitoring helps game operators to get an overview of the customer, their business and risk profile, including sources of funds if needed. It is worth getting to know your customers well, as it is not always at the registration stage that fraudsters or money launderers show who they really are.
In summary, betting sites need to implement robust AML compliance measures to ensure the security and integrity of financial transactions. In this way, you can guarantee a safe and reliable environment, both for your customers and for the betting market as a whole. Did you like the theme? We can talk more about it.
Natalia Nogues
CEO of Control+F5 Gaming
