Know your customer (KYC) is an important part of online casinos. It is a process that requires personal and identifying information to verify the identity of customers and to protect against fraud.
There are many reasons why gaming companies require KYC at online casinos. The main reason is to prevent the use of money laundering in gambling. Secondly, it can help in catching out people who are underage or in some cases criminals trying to launder money. Moreover, gambling operators might face harsh fines if they fail to properly conduct KYC and AML.
KYC helps gaming companies to get a better understanding of their players and their spending habits so they can target them more effectively with promotions and offers.
What does KYC at online casinos look like?
There are three main types of KYC:
1) Basic level: this process is very easy and quick, where customers need to provide scanned copies or photos of their valid ID card, driver’s license or passport.
2) Standard level: this process requires customers to provide more than one form of identification and can include a utility bill, bank statement, credit card statement, etc.
3) Enhanced level: this is the most rigorous form KYC verification which requires additional documents such as proof of money source to make sure that the customer has not been involved in any kind of money laundering activity or terrorist financing.
KYC is not unique to online casinos. SWIFT considers it quite a routine procedure when it comes to any form of banking and many other financial activities as well.
It is fair to say that the absolute majority of online casinos will require their customers to pass KYC in 2022 so the chances are high you are going to encounter this procedure sooner or later. It happens because the gambling commissions around the world impose strict requirements on their license holders, not because casinos want to give you hard time. The situation with KYC at online casinos will definitely remain the same in 2022 (according to Casino Howto though, a tiny portion of online casinos do not bother their customers with this tedious paperwork).
Which documents do players have to upload in 2022?
We do not anticipate that the list of required documents will change in 2022. It will include exactly the same documents as it was in 2021 and the previous years:
- Identity verification documents (keep in mind that you will have to download just one of them, not altogether are required). In order to make sure the person is who they say they are, most online casinos will ask for an identification document. This can be a driver’s license, an ID, or a passport.
- Proof of address documents. Proof of address documents are used to verify the legitimacy of a person’s address. These documents also serve as a form of identification. Normally, people can produce these proofs at various levels of complexity by providing any one of the following: Utility bills, Bank statements, Credit card statements, Property lease agreements.
- Source of funds documents are basically AML documents and they are essential for some financial transactions to take place at online casinos (normally, they are required for $5,000 deposits/withdrawals though in some jurisdictions, for example, UK, they can be asked for much lower transactions). It provides a way for online casinos to know the origin of the funds. They have to make sure that your funds are legal and that you can afford to spend this money on gambling (in the UK). Source of finds documents can be: a payslip from your job, a bank statement that proves consistent cash flow from a legal source, any other proves (dividends, etc.).
Make sure you inspect your documents before sending them in. They must be clearly legible.
When do online casinos ask you to upload documents?
Many of the popular casinos found online impose strict terms and conditions on their players. It is not uncommon for these casinos to ask for you to upload documents at the time of registration. This is usually an agreement with their players, which states that you are agreeing to their terms.
One of the most common requests by online casinos for uploading documents is when you register with them, so it would be best to review these documents before establishing your account.
Moreover, some gambling jurisdictions (such as the UK) require their license holders to ask for documents before players can play for real money.
However, there are another group of online casinos (usually they are licensed by less strict jurisdictions, such as Curacao) that require uploading documents only on withdrawals. So if a casino didn’t ask you to provide your ID on deposits, be sure it will once you decide to withdraw your winning.
We would highly recommend you to pass KYC before you play for real money. This way you can be sure that your winning will be paid as smoothly as possible.
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Source: Igaming
