All the established guidelines are fundamental to ensuring integrity and accountability in the gaming sector, outlining the steps that betting operators must follow to comply with Know Your Customer (KYC) practices.
Once again ahead, Legitimuz provides details on how the identification process for each user should be conducted and presents ways to optimize the new mandatory steps following the issuance of SPA/MF Ordinance No. 1,231, announced by the Secretariat of Prizes and Betting (SPA) of the Ministry of Finance.
Guidelines for the identification of bettors according to the new ordinance
As stipulated, a new era of rigor and security sets the standard for the bettor registration process in the gaming and betting industry. According to SPA/MF Ordinance No. 1,231, it becomes mandatory to implement KYC procedures at the time of new bettor registration.
From the effective date of the rules, all operators are required to incorporate a detailed registration process into their systems, demanding complete personal data and rigorous authentication.
From the effective date of the Ordinance, it becomes mandatory for all operators to integrate a detailed registration process into their systems. This includes collecting a full range of personal information from bettors, which involves:
* Basic data: each bettor must provide their full name, CPF (tax identification number), date of birth, and nationality.
* Residential address: a critical detail is the complete residential address, which must be verified to ensure the precise location of the user.
* Proof of identity: the verification of personal documents, such as a photo ID, is necessary to confirm the bettor's identity.
* Communication verification: after collecting the basic information, operators must verify the user's means of communication:
- Phone number: phone number verification ensures that the operator can maintain direct contact with the bettor, essential for security communications and promotions.
- Email address: verifying the user's email address not only facilitates regular communications but also serves as a means for account recovery and important notifications.
To further strengthen security and prevent fraud or identity duplication, the ordinance requires the implementation of advanced authentication technologies, such as facial biometrics, one of the most effective and secure methods for confirming an individual's identity.
Facial biometrics compare the user's face with the photo on the provided identity document, using advanced algorithms to ensure that the person registering is the same as the one on the presented document.
How iGaming platforms can optimize user identity verification
Standardizing Know Your Customer (KYC) requirements turns the need for compliance into a competitive advantage for iGaming platforms.
By enhancing the efficiency and security of verification processes, these platforms do more than just meet regulatory demands; they also position themselves prominently in the market, providing an attractive experience for users.
A streamlined and agile verification process is crucial to capturing and maintaining user interest from the first contact. Many potential bettors abandon registering on a new platform due to the complexity or delay in the verification process.
By minimizing these obstacles, platforms can:
- Reduce registration abandonment: intuitive user interfaces and quick verification procedures keep users engaged, decreasing the dropout rate during the registration process.
- Speed up access to gaming: allowing new users to start playing faster increases the likelihood of conversion and initial deposits.
- Detect and prevent fraud: using facial biometrics, document verification, and behavior pattern analysis helps identify and actively block fraud attempts before they affect the platform and its users.
- Comply with Anti-Money Laundering (AML) regulations: in addition to meeting KYC standards, proper verification processes are crucial for complying with AML policies, avoiding heavy penalties and fines.
Adopting these strategies can position the platforms that implement them as industry leaders, conveying reliability and security to users.
Legitimuz is at the forefront of compliance and innovation
Legitimuz positions itself as an essential partner for operators who not only want to meet current regulations but also stand out in the market.
As the only Brazilian KYC provider for iGaming validated by GLI (Gaming Labs International), Legitimuz ensures that betting platforms meet all regulatory requirements effectively.
Operators who partner with Legitimuz benefit from:
* Customized interfaces: aligned with the client's visual identity, these interfaces facilitate user interaction, increasing conversion rates.
* Expertise in the Brazilian market: with an exclusive focus on this market, Legitimuz provides precise solutions tailored to local trends and regulations.
* Agility in verification processing: the reduced time in the verification process keeps users engaged, improving overall efficiency.
* Detailed dashboards: with graphs and metrics tailored for iGaming, allowing operators to adjust their strategies based on accurate information.
* High accuracy with facial biometrics: Legitimuz's facial biometric technologies offer 96% coverage and 94% accuracy, strengthening the security of the betting system.
Among the platforms already benefiting from Legitimuz's solutions are:
All the mentioned operators exemplify how effective KYC implementation can significantly elevate operational standards, ensuring not only compliance but also user preference and loyalty.
See the full article on Legitimuz's blog
Source: Legitimuz
