Anti-Money Laundering (AML) Solutions

What is AML in gambling?

Gambling is an industry where financial crimes take place very frequently. Offenders avail iGaming not only for money laundering but also for the financing of terrorism. That’s why one of the most important issues for operators is to prevent converting illegal funds into white money through their platforms. To solve this problem and control processes owners of online casino businesses follow Anti-Money Laundering policy. 

AML (anti-money laundering) is the international principles of fighting with money laundering, the financing of terrorism, and the creation of weapons of mass destruction on criminal funds. AML includes the identification, storage, and exchange of information about users, their income, and transactions between different organizations and departments.

Gambling platforms use different sets of anti-money laundering measures. Some operators just ask their clients to identify their personalities and confirm that they have no criminal record. Others go on and check the sources of funds of some players. It’s not easy and sometimes can scare away part of clients, but it helps businesses to avoid problems with the law and huge fines.

Money laundering laws

The Financial Action Task Force (FATF) is a main global regulator in AML questions. FATF was founded by the G-7 summit in 1989 and now includes 39 members from all the most important regions of the world. They create anti-money laundering acts and recommendations for countries and companies and also impose fines on those who violate AML policy.

Here are some basic recommendations from FATF:

  • Customer Due Diligence (CDD) is the most common anti-money laundering act, which implies that financial institutions must check their clients by verifying their identity and also initiate more serious audits for risky clients.
  • Keeping records about customers is also an essential part of AML. Collecting and saving data about clients allows businesses to identify violators and avoid money laundering. In those cases, a record is a proof.
  • Monitoring suspicious transactions and activities. If a company notices something suspicious in a client’s behavior, it must report it to the competent authorities. What customer activity is considered suspicious? Dealing with cash, holding money in different accounts and in several banks, transactions abroad, buying futures, options, and investing in securities through brokers or dealers, etc.
  • Following a Risk-Based Approach means that financial institutions should always evaluate the risks of money laundering and try to avoid crimes with a special set of measures.

What is KYC in gambling?

Know Your Customer (KYC) – is a principle, which obliges financial institutions to identify their customers’ personalities. KYC in gambling is a multifunctional system of measures that protects not only the company but the client also. 

Verifying identity helps operators to evaluate potential risks of cooperation with each client. In some cases, owners of gaming platforms can limit the number and amount of transactions for some customers to avoid money laundering. In addition, KYC is the best instrument to filter customers by age, because in many jurisdictions there are age restrictions in gambling.

On the other hand, KYC is also useful for clients. If a customer provides honest and complete personal information, the platform can choose and offer the most suitable and affordable opportunities for him. Also knowing sources of income will help operators to protect clients from investing more money than they can afford.

With KYC gaming becomes better because operators know clients, their needs, and opportunities, keep under control compliance with the law, and thanks to that avoid fines and sanctions for both sides. 

Gambling – high risk for money laundering

iGaming industry has a red level of danger of money laundering. Criminals choose gambling platforms to convert their “dirty” incomes into white money. Unfortunately, sometimes they do it successfully. The worst thing is that this money can be also used for financing terrorism. That’s why the overwhelming majority of online gaming operators try to reach compliance anti-money laundering rules for their platforms.

Range of services LicensingAid provides for AML

Without professional help, it’s hard to figure out and implement an anti-laundering policy for the company. LicensingAid offers a set of ready AML solutions for their clients. What benefits do you get from working with us?

  • Security and anti-money laundering compliance. Entrust professionals to do all possible to avoid crimes on your platform. 
  • All-in-one decision. You will get an establishment, implementation, and management of best AML practices.
  • Saving your time. You can concentrate on your business goals and incomes.

Our AML services:

  • Preparation of AML legal drafts for responsible gambling
  • Managing the process of monitoring, analyzing, and reporting suspicious activity
  • Anti-money laundering lawyer consultations
  • Full-scale independent inspection 
  • KYC principle implementation
  • Other services, which’ll help your company to accomplish AML requirements

Contact us to learn more about our AML compliance services.

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