Implementation of KYC (Know your customer) is a highly important factor for a wide range of industries, such as banking, finance, and iGaming. This allows the businesses in this industry to verify their customers’ identity and ensure that it is not used for any illegitimate purposes, such as money laundering, terrorist funding, etc.
However, not many businesses, especially in the iGaming industry are not sure how to implement KYC. The implementation of these protocols at all levels is vital. With the right iGaming payment processing company, such as Pay.cc, you might just be able to ensure that your payments are safe and secure.
But there is a lot more that goes into the implementation of KYC. So, what are the best practices that you can follow for the implementation of KYC in your iGaming business? In this article, we’ll explore the best practices for KYC implementation to give you a better idea about it.
Enforce CDD for Your Business
First things first, it is highly important that you carry out thorough customer due diligence before letting a user access your iGaming platform. Businesses in the iGaming and online casino sector should conduct comprehensive customer due diligence (CDD) procedures. This will help them in identifying and verifying the identity of their potential users.
It is highly important that you gather and verify personal information, such as first and last name, date of birth, address, and other relevant information. In addition to that, your CDD procedures should also consist of verifying the source of funds for the iGaming payments to ensure that they are not coming from any suspicious source.
Regularly Monitor Customer Activity
Another important thing that businesses need to do for KYC implementation is monitor customer activities. The process for KYC isn’t just complete after the initial sign-up, it continues to go on. Checking out the customer activity to spot any suspicious activity and potential money laundering or other illegal endeavors is vital. This is something highly important that businesses need to focus on.
You should carry out periodic reviews of customer information to ensure that they are up to date. Not only that, it is also important that you focus on monitoring transactions to spot any suspicious ones before they lead to major issues. Above all, conducting enhanced due diligence (EDD) on high-risk customers is imperative.
Use Advanced Technology and the Right Tools
Using technology and the right tools is also an important element when it comes to implementing the KYC. You need to have the right tools and technologies, such as biometric authentication, artificial intelligence (AI), and machine learning (ML). This will allow you to further improve the overall efficiency of your KYC processes.
The best thing about using these technologies and tools is that they can reduce the risk of human error by automating various processes. Not only that, but it can also improve the accuracy and speed of the process for identification and verification. Furthermore, it is also important that you choose a reliable and trustworthy iGaming payment processing company, such as Pay. cc that can assist you with your KYC compliance.
Develop a Comprehensive KYC Policy
Not having a KYC policy upfront can make it difficult to ensure that you adhere to the set protocols. What you need to do is have a well-defined KYC policy that should mention the entire company’s risk appetite, risk assessment procedures, customer identification and verification procedures, etc.
This is not a one-time thing; but rather an ongoing effort. You would have to change your KYC policy from time to time after regularly reviewing it in accordance with the changing regulations and business requirements.
Train Your Team
Last but not least, it is highly important that you train your team so that they have a comprehensive idea of the high-risk payment processing, customer verification, and other relevant things related to KYC. While you can provide a basic understanding of KYC to all your employees, those who are directly involved in KYC procedures should have extensive training.
Keep in mind that the training is an ongoing part of their job as they will have to stay updated with the new regulations, procedures, and technologies. By training your employees you can not only enhance the quality of the KYC process but also mitigate the risk of non-compliance.
Final Words
The world of iGaming offers various benefits for entrepreneurs, but it is certainly not free of risks. With issues surrounding iGaming payments to compliance, it is important that you know about these things to deal with them accordingly. Hopefully, this article has given you a better idea of how you can implement the KYC protocols. An important thing to keep in mind is that the iGaming payment gateway will not only help you with getting the payments but also with adhering to KYC compliance.
