If you’re like most people, the idea of compliance probably doesn’t make your heart race with excitement. In fact, it might make you downright nervous. Compliance can seem daunting, especially if you’re not sure what to do or where to start as a casino or online casino like god 55 and 12play.
But don’t worry! We’re here to help. In this blog post, we’ll be discussing 10 common compliance mistakes and how to avoid them. So read on, and learn everything you need to know about casino compliance!
1. Not Understanding the Importance of Compliance
One of the most common mistakes that casino operators make is not understanding the importance of compliance. compliance is crucial in any industry, but it’s especially important in the gambling industry. Why? Because the gambling industry is heavily regulated. There are a lot of rules and regulations that govern how casinos operate, and if casinos don’t comply with those rules, they can face severe penalties.
To avoid this, casinos must ensure that they understand the importance of compliance and make it a priority for their business. They can update their gamebooks and slot machines to make sure they’re compliant with the latest regulations. They should also have a compliance officer on staff who can help ensure that the casino is following all the rules.
2. Improper identity checks
Another common compliance mistake that casinos make is failing to properly check the identities of their customers. This is a big problem because, under anti-money laundering laws, casinos are required to verify the identity of their customers before they can gamble.
If a casino doesn’t verify the identity of its customers, it could face serious penalties. To avoid this, casinos should make sure that they have a robust identity verification process in place. They should also train their staff on how to properly verify the identity of customers.
3. Not Keeping Records
Casinos are required to keep records of their transactions, and if they don’t, they could face severe penalties. Casinos should make sure that they have a system in place for keeping records of their transactions. They should also train their staff on how to properly keep records. With this, the compliance team will be able to review the records and make sure that everything is in order.
4. Failure to verify proof of source of funds
A serious AML violation is a failure to verify the source of funds for gambling transactions. In other words, if a customer wants to gamble with $10,000, the casino must make sure that the customer actually has $10,000 before allowing them to gamble.
Casinos often fail PoSoF or KYC for their customer, which can lead to severe penalties. Any casino’s first priority should be to determine a client’s source of funds. Upfront PoSoF or KYC is essential to avoid any compliance issues down the road. This verification can be done by requesting documents such as bank statements or payslips.
5. Not Reporting Suspicious Activity
Another compliance mistake that casinos make is not reporting suspicious activity. Under anti-money laundering laws, casinos are required to report any suspicious activity to the authorities. This includes things like large cash transactions, unusual gambling behavior, or anything else that seems suspicious.
By failing to report suspicious activity, casinos put themselves at risk of being fined or even shut down. To avoid this, casinos should have a system in place for reporting suspicious activity. They should also train their staff on how to properly identify and report suspicious activity.
6. Poor client monitoring
One of the most important aspects of compliance is client monitoring. This involves tracking a client’s gambling activity and identifying any red flags that may indicate illegal activity.
Some casinos stop watching after a client has been onboarded and authenticated. Another severe AML violation is neglecting to investigate the source of funds and all transactions a client made throughout their customer lifetime.
A non-stop monitoring and survivance should be implemented at all times to avoid any compliance penalties.
7. Undetected gambling addiction
Gambling addiction is a serious problem, and casinos have a responsibility to help prevent it. One way they can do this is by offering responsible gambling services. This includes things like setting limits on how much money customers can gamble, providing information about gambling addiction, and offering help to those who may be struggling with an addiction.
Compliance teams should make sure that casinos are offering responsible gambling services. They should also provide counseling or coaching services to help casino employees deal with customers who may have a gambling problem.
8. Not Cooperating with Authorities
Another compliance mistake that casinos make is not cooperating with authorities. This includes things like refusing to provide information or documents when requested or failing to report suspicious activity.
Casinos that don’t cooperate with authorities run the risk of being fined or shut down. To avoid this, compliance teams should make sure that casinos are cooperating with any requests for information or documents. Keep every document in check and make sure to verify its authenticity to avoid any compliance issues.
9. Poor risk assessments
One of the most important aspects of compliance is risk assessment. This involves identifying the risks associated with a customer and taking steps to mitigate those risks. For example, if a customer is from a high-risk country, the casino may take extra steps to verify their identity.
Poor risk assessments can lead to serious sanctions and penalties. To mitigate such risks, a casino must have EDD triggers to assess and analyze risks related to their customers. These can include things like enhanced due diligence, political exposure, and high-risk countries.y
10. Not having an AML policy
Anti-money laundering (AML) laws are designed to prevent criminal activity like money laundering and terrorist financing. All casinos are required to have an AML policy in place. This policy should outline the procedures that the casino will take to prevent and detect money laundering.
Not having an AML policy is a serious compliance issue. Casinos that don’t have an AML policy in place could be fined or even shut down. Write down your own casino AML policy that has robust procedures to prevent and detect money laundering. Plus, it should also protect your business from third-party risks.
Overall, these are some of the most common compliance mistakes that casinos make. By avoiding these mistakes, casinos can reduce their risk of being fined or shut down. In addition, they can also create a safer and more compliant environment for their employees and customers. It’s important to have fun, but having a safe and compliant gaming environment is much more important!