Preventing money laundering via online casinos and gambling platforms
By law, banks and other financial institutions must comply with anti-money laundering (AML) requirements. Gambling establishments are also considered as financial institutions. As online casinos and lotteries deal with huge amounts of money by collecting, transferring, and paying out money, they must also comply with AML regulations.
Online gambling offers many opportunities to launder money. Once money is paid out, it is then given legal status. Therefore, gambling sites must take steps to both fully identify users and in turn, prevent money launderers from using gambling applications as a way to conceal the source of their funding.
AML programs include different disciplines, with most of them following the “Know your Customer” principle, which includes:
- Customer Due Diligence (CDD)
- Customer screening and monitoring
- Identity verification processes
- Reporting and observation of suspicious activities
- Document Verification
Utimaco supports verification processes with Public Key Infrastructure and document verification via the issuance and verification of qualified electronic signatures. In addition, various cybersecurity solutions for the collection and protection of sensitive user data are also available.