Anti-Money Laundering (AML) Solutions

Anti-Money Laundering (AML) Solutions

What is AML in gambling?

Unfortunately, iGaming businesses can be a popular target for organized crime as a means of money laundering, which is also sometimes linked to the financing of terrorism. It’s critical that iGaming operators work to prevent their business from being used for illicit purposes.

Anti-money laundering, or AML, is the act of preventing a business or institution from being used for the criminal purposes of transforming “dirty” money into “clean” money. AML includes the identification, storage, and exchange of information about users, their income, and transactions between different organizations and departments.

AML measures will often be a part of your licensing conditions, and money laundering failures can lead to fines, warnings, and even the revocation of your license. Some casinos ask clients to verify their identities and confirm they have no criminal record.Others check some players’ sources of funds.

AML and CFT — combating the financing of terrorism — are highly important fields throughout the global iGaming industry.

Money laundering laws

The Financial Action Task Force (FATF) is an international organization dedicated to combating money laundering and other financial crimes. Founded by the G-7 summit in 1989, the FATF now includes 39 member countries around the world. The FATF creates recommendations for policies and standards that governments can put in place to combat illegal cash flows. 

Here are some examples of FATF recommendations:

  • Customer Due Diligence (CDD): CDD, the most common anti-money laundering measure, involves identity verification and in-depth auditing for clients perceived as high-risk. In the world of iGaming, CDD is commonly referred to as Know Your Customer (KYC).
  • Record keeping: Tracking customer behavior is an essential part of AML. Saving customer data enables the financial institution, casino, or other business to analyze and predict which patterns of behavior pose the biggest risks.
  • Monitoring suspicious transactions and activities: Companies should report suspicious behavior to the relevant authorities as soon as possible. 
  • Following a risk-based approach: Financial institutions should always evaluate the risks of money laundering and take a proactive approach to preventing the occurrence of financial crimes. 

What is KYC in gambling?

Know Your Customer (KYC) is the principle that businesses and financial institutions have an obligation to verify their customers’ identities. KYC processes protect both the business and the clients. 

Identity verification through KYC processes helps operators evaluate the potential risks of cooperating with a client. This helps in two areas; first, KYC processes are a vital part of AML measures, and second, they prevent underage gambling, another serious concern. 

KYC improves iGaming for everyone involved; companies can fulfill their social and legal obligations and players can receive a more tailored experience once casinos can use their personal data to segment them properly.

AML services from LicensingAid

Without professional help, it’s hard to figure out and implement an anti-money laundering policy. LicensingAid offers a set of ready AML solutions for their clients. 

Working with LicensingAid increases your company’s security and AML compliance. We also provide establishment, implementation, and management of the best AML practices, saving you time that is better spent on strategizing for your business. 

What benefits do you get from working with us?

Our AML services:

  • Preparation of AML legal drafts for responsible gambling
  • Managing the monitoring, analyzing, and reporting suspicious activity
  • Anti-money laundering legal consultations
  • Full-scale independent inspection 
  • KYC principle implementation

Contact us to learn more about our AML compliance services.

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