What Measures Do Online Casinos Take to Combat Money Laundering?

There are hundreds, if not thousands, of online casinos. These casinos have licenses, and they are allowed to serve players from many countries. As such, they can be a haven for money laundering. For example, people can deposit huge amounts of cash in their casino balance and then just withdraw it later on. Banks would never know that the funds were illegal in the first place. So, how do casinos ensure that they fight money laundering?

Know Your Customer

All financial institutions, or those that facilitate financial transactions, must follow standard protocols when they take in customers. This process is called Know Your Customers or KYC.

In KYC, institutions, including website operators like GG.bet online casino, must get valid identification documents from the consumers or users. The valid identification must match the name on the credit card, debit card or bank account that they use for depositing. Because of this rule, money launderers are not likely to take the risk, knowing that they can be identified. As you know, criminals want to hide in the dark and will avoid any form of exposure to their identities.

The KYC process has a reporting system. If a person's documents cannot be verified, the casino has to report it. The same thing goes if the documents have inconsistencies, such as varying last names or first names. Another red flag that casinos look for is a fake document. Casinos have ways to verify if what a player submitted is a legitimate government ID or not.

Filing Suspicious Activity Reports

Suspicious Activity Reports, or SARs, are reports taking notice of transactions above $5,000. This rule is specific to the USA. Casinos must file a SAR to the Financial Crimes Enforcement Network if a player won or deposited $5,000. The key here is the word "unusual." Not all transactions that are $5,000 and above are illegal. For example, a person may have won $5,000 in total by playing blackjack or slots - this is not really unusual.

Casinos must also report currency transactions over $10,000. If a customer makes a deposit above that threshold, the casino is expected to file a report. The enforcing government would review the details and take appropriate action.

Some money launderers can get past the KYC method. If this happens, the launderer will deposit a huge amount to the casino and would not mind losing the money in games. However, they will use this situation as a means to "wash" their money. They will file reports to banks that the money they are depositing is "casino winnings." They do not even have to show a report from the casino.

Strict Rules for Management

Australia has its own governing body to combat money laundering. Those that take in Australian players are required to comply with these rules.

Customers must get verified in as short time as possible to prevent criminals from making fake identities. There is also a prohibition in terms of credit limits. A credit limit refers to the amount of money that a player can borrow from the casino.

Those who service Australian players must also ensure that they do not offer ridiculous incentives, such as free money. When closing an account, the casino must also comply with specific conditions. The casino must also provide regular reports or gaming statements of their customers.

Lastly, the casinos must be able to detect suspicious activities. An example of this is using multiple bank accounts that come from different countries. If a player does this, the casino is expected to raise the alarm and report it to the financial sector that governs the casino.

Each online casino has a license from a country to operate. For example, an online casino may get its operating license from the UKGC. In such a case, the casino has to comply with UK Anti-Money Laundering laws. All their players, regardless of the country of residence, must comply with these laws too. If a casino has a license to operate from different states or countries, then they have to comply with different rules. This is the reason one player must not wonder if different casinos have different expectations and requirements from players.