Every user needs to complete KYC verification because it forms an essential component in the secure betting process.

A website such as Vulkan Vegas requires implementation of the know-your-customer process commonly known as KYC. The main goal of this business process is to confirm user identities for money laundering prevention and fraud prevention purposes. The following article details all the essential reasons why verification at this level is vital.

What Is KYC?

The banking service known as KYC functions as a process for banks to verify depositor and customer identities. The systematic purpose of this process aims to find and eliminate criminal offenders. Banks execute their customer identity verification process using interna assessment methods while also relying on government institutions and third-party institutions.

The KYC process consists mainly of three fundamental measures:

  • A citizenship document must be delivered to the client upon request.
  • Copying identification documents should include official government-issued IDs besides others.
  • Submitting a photo.

Documents issued by the government show high resistance to forgery attempts. Your company would benefit more from using government documents as its primary form of identity confirmation.

Additional identity verification requirements in some financial institutions include work-related papers combined with housing agreements as well as bills from utility providers including gas and electricity and cable subscriptions and internet service. The bank can establish an account after all the input data successfully undergoes verification checks.

The gambling and betting industry operating standards now include this verification process. Why? Such financial transaction processing creates the need for these organizations to establish this system. A spot betting company requires bet processing which necessitates proving that the bettor is indeed the cardholder.

Benefits of KYC

A know-you-customer system proves beneficial when used by companies in the betting industry through multiple advantages. 

Customer Segregation

The KYC system allows organizations to classify new users who sign up into three risk groups: high-risk, low-risk and medium-risk. Your organization can implement suitable measures through such comprehensive customer segregation levels. 

A system should be established to monitor specific activities of customers who have been marked as high-risk. Establish a funding barrier upon discovering a registered user meets the characteristics of being a fraudster through your platform.

You must conduct customer verification to establish their category but discovering stolen payment cards makes your business unprepared. The segregation process helps Casino operators identify which customers place big gambling wagers. These customers should be placed in specific categories so you can identify the potential fraudsters more efficiently.

Compliance With Legal Requirements

The legal requirement known as KYC functions as a prevention system that detects money laundering practices. The law exists in numerous nations worldwide while some countries use different names to describe it. All legal statutes focus on battling money laundering activities which makes them related.

Why is there such a law? The laws about money laundering exist because this practice lets terrorist groups secure funding. The criminal activities of money laundering function as the basis for promoting fraudulent schemes.

Online transactions face high risks from criminal activities because individuals who commit these crimes operate without detectable faces. A solution to combat this issue requires verification documents to prove identity matches statements in the records. A lack of KYC procedures provides governments a justification to force betting companies out of operation. Such accusations would come easily against the company. The existence of this model helps protect the company from baseless accusations.

Properly Identify Customers

The process demands that you properly identify your customers to determine their relationships with terrorist organizations or criminal organizations. A company must determine independently if they want to allow a particular customer to start business operations with them.

The process of identifying your customers enables you to determine both the destinations for money transfers and the source accounts for deductions during transactions. In all financial operations errors sometimes occur due to their inevitable nature. To fix such errors you need to guarantee you misdirect your money to suitable recipients.

Monitor Customer Activities

The ability to track customer behavior becomes possible through proper customer identification. A well-done customer identification enables proper classification of them so you can evaluate their betting style. Through proper monitoring you will learn about the sources from which this customer acquires their funds.

Large unexpected wagers from customers should trigger suspicions among storeowners. Why? This method functions as a process to make funds acceptable. Players who win money through gambling operations accomplish legitimation. The KYC process allows you to detect and understand the reasons behind each bet. The analysis will help you determine whether the customer represents any suspicious activity. 

Betting security relies on the necessity of verification procedures because they provide the only evidence for proper bettor identification. The betting company will gain a protective gate system which halts criminal organizations from taking advantage of its services for money laundering purposes.