How AML Rules Are Reshaping Onboarding at New Online Casinos

The Rise of AML at Online Casinos

AML regulations enable the detection of “dirty money” – money derived from criminal activities – being processed into “clean money” – money earned through legitimate business transactions or paid out from a casino.

Some news that may shock you: gambling emerged as one of the top three sectors that incurred the highest amount of anti-money laundering (AML) fines in 2023, racking up over $475 million in penalties. These high fines show the intensity of AML and how powerful it has become in stamping out unlawful behaviour.

Criminals can utilise cryptocurrencies to remain anonymous and smurf bets, returning them with a laundered currency that is typically untraceable, if withdrawn back into a crypto account.

The significance of AML rules cannot be overstated enough. As of late, these rule changes have been spotlighted by the UK Gambling Commission (UKGC) to exercise a stricter regime, rigorously checking user identification and transaction history. The measures are in place to ensure lawful behaviour and to protect honest players.

How AML Impacts Onboarding

The sign-up process for new accounts has become somewhat arduous compared to how it used to be. This is, of course, for the most part, down to AML regulations. When you join a casino, they are now lawfully required to know exactly who you are.

The journey of providing numerous pieces of identification must be completed in most cases before you are allowed to deposit and withdraw money. As an example, you must provide a utility bill, photo identification, a recent bank statement and even an explanation of where your funds come from before depositing any sums of money.

Here are some onboarding hoops you must jump through now, post-AML:

• Enhanced Verification: You are now required to provide more documentation upfront; gone are the days of a simple email and password.
• Real-Time Checks: Systems employ comprehensive automation, enabling instant flagging of suspicious activity, including large deposits or overlapping information (this is seldom accurate).
• Longer Wait Times: Because of added safety measures, wait times have grown significantly; there’s no bot-ification here.

Benefits for Players

As much as AML and KYC checks can often seem like an endless lap of hurdles, they are crucially beneficial for honest players. You are now certifiably more likely to avoid a scam, as spotting licensed operations has now become significantly easier.

Now that the terms and conditions have been polished up, it has created a safer playing field for all players to wager and withdraw money without concerns.

Challenges for New Casinos and Players

More rigid AML regulations have set a precedent for operators as well as players. Newer casinos are being met with sky-high compliance costs and launch times that proceed at snail’s pace. Granted, all the above can make players a little sceptical as to whether or not signing up is ultimately worth it, especially if there are privacy concerns, speeds are too slow, or verification is failing multiple times. It’s much like lining up at the turnstiles on a Saturday; bag checks and identification checks might feel laborious, but once you get in, you feel safe and comfortable enough to enjoy yourself without worry.

How New Casinos are Adapting

To ensure consistency, new casinos are employing seamless processes and smarter technology for absolute safety.

• Automated Verification Systems: Robust operations employ smart tools like Veriff to process smooth identification checks.
• AI Monitoring: AI can be utilised to path player patterns, which can include deposits, GPS data and detection of potentially unlawful activity in real time.
• Digital Document Upload: Streamlined identification uploads, such as drag-and-drop UI processes, make things super easy for players.
• Real-Time Verification: Several operators are now performing KYC checks in only a couple of minutes, which in turn enables players to be depositing and playing without elongated waiting times.

Such modernisation of procedures shows how casinos can garner trust without compromising usability. Compliance processes, to an extent, are faster and smarter, benefiting both operator and player. It’s a win-win for both parties.

The Old vs New Onboarding Experience

The onboarding process at online casinos used to be super easy, usually only requiring an email and password to complete. Now, AML regulations have consumed these simple steps. As players, we are required to provide more information than we used to be happy to reveal, including personal bank statements.

Despite this, verifying your account nowadays can often be quicker than expected; this is entirely dependent on the websites you use. As a player, it is well worth having all necessary documents prepped ahead of time, having at the very least your passport (or driving licence), a recent utility bill, and an up-to-date bank statement. Make sure these are scanned properly, using either a PDF scanning tool or a printer scanner – no curling corners. As a rule of thumb, if you feel like a casino is asking for more than you are willing to give away without explanation, then stop there. If it feels overly complicated or intrusive, put a line through it. This is usually a red flag; trust your gut.

The Future of Onboarding with AML

AML checks are being performed faster and smarter thanks to the rapid evolution of casino procedures, resulting in supposedly improved onboarding times and measures. Worldwide gamification is often cited as the cause for this seamless transition; these global integrations will mean frictionless signups for everyone.

The Horizon

If you’re a regular onboarder to new online casinos, expect to see some technologies listed below integrating themselves into the process imminently or in the near future.

• In-one Verification: Blockchain identification can bring synergy across operations, meaning you will be verified across all websites with one single check.
• Biometric Passcodes: Fingerprint scans and facial recognition will soon be employed to exercise complete safety.
• Clever ID Checks: AI can now be relied on to onboard singularly, completing AML checks and documentation verification with ease.

Rules That Are Sculpting the Future

As AML regulations tighten the string of online casino sign-ups, there are a few extra rules you may see appearing, some of which could affect onboarding procedures more so.

• Continuous background monitoring of activities to spot discrepancies before they turn into problems.
• Additional checking of large sum movements or potentially risky behaviours.
• KYC (Know Your Customer) verification is required upon signing up to align with AML regulations.
• Sourcing fund and income information if prompted to during the sign-up process.

The UK Gambling Commission are trailblazing the implementation of AML changes across most British websites, raising the bar for the industry globally.