Know Your Customer (KYC)

Birnir Gunnarsson

About Birnir Gunnarsson , Online gambling & betting expert

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KYC, commonly known as Know Your Customer, is a specific process employed by the majority of online casinos to safeguard themselves against unreliable gamblers who want to take advantage of the casino’s features and bonuses. The process includes several steps that ensure the gamblers are playing with their own funds and have proof of their residence and income delivered to the casino site. KYC is another way for the casinos to provide fair play to their patrons and create a safe gaming environment.

What Is KYC and AML?

What Is KYC?

If you are a player from Iceland who is already familiar with how online casinos work, you probably know that KYC is a necessary procedure at most online casino sites. This is a method that is applied by the casinos to confirm the identity of their patrons. The identity confirmation process is usually multi-layered, meaning that the players will have to provide several types of documents for verification. This may include proof of the player’s address, proof of the player’s ID, and proof of the player’s funds. KYC can also be triggered when the players perform transactions at an online casino.

What Is AML?

AML, or Anti-Money Laundering, typically refers to the practice that online casinos perform to prevent suspicious financial operations. So, what do casinos do exactly? Most online casino platforms monitor their transactions to confirm that the finances are not being used for illegal purposes. Global financial regulations demand that casinos install an AML system on their websites to prevent criminal activities.

The Difference Between Both

KYC puts more focus on identifying irresponsible individuals and underage gamblers trying to make their way into the online casino space. AML, on the other hand, is about performing an investigation that detects and prevents illegal behavior. In addition, AML compliance is mandatory for most casinos around the world.

What Can Trigger KYC Checks?

  • Unusual Gambling Behavior

    If the player exhibits unconventional behavior, this may trigger an impromptu KYC check. For example, the casino might notice that inactive players are suddenly very engaged or start placing high bets. If the player is making large deposits and the casino history shows they have always played on a budget, this can also be a cause for KYC.

  • Reaching the Defined Withdrawal Limit

    There are casinos in Iceland that establish a mandatory threshold for online withdrawals. Once the players reach the established withdrawal limit or exceed it, the casino is obliged to check whether the funds are cashed out to a rightful account holder and if the account holder is not a fraud.

  • Changes of Personal Details or Payment Information

    There are times when the players need to update, adjust, or edit their personal information, which includes changing their personal address or preferred payment methods. When this happens, it is the casino’s responsibility to verify the updated information.

  • Periodic Audits Conducted by Casinos

    The casinos are required to perform routine checks as a part of their operational mode. When this happens, both random and scheduled checks can take place at an online casino, ensuring all players meet the KYC requirements.

The Info You Need to Complete KYC Check

Every time you sign up at an Iceland casino, you have to fill out a registration form and undergo the KYC verification process. The KYC protocol may also be applied whenever you are depositing or withdrawing funds online. The following details are required for the process to run smoothly:

  • Your full name (first name, last name - no abbreviations or nicknames)
  • Your home address (make sure it is your current home address)
  • Your date of birth (the casino wants to know if you are of age)
  • Your contact information (this usually includes a phone number and email)

Since you are doing the KYC check online, the casinos have the right to request additional verification to have complete confidence in your identity as a casino player. The additional verification steps usually include the following:

  • Verification of your ID
  • Verification of your address

Sometimes, the casino may also ask the players to provide the source of their funds as an additional step of the KYC check.

What Documents Are Needed for KYC Check

ID

If you ever played at a land-based casino or visited one in your lifetime, there is no need to tell you about the amount of frustration that accompanies the fact that sometimes, the casino will request your ID at the entrance. This is done to ensure the players are not going against the law when they gamble and that all of the casino’s patrons are actually eighteen and older. However, the same tactic is applied by online casinos that want their security measures to be maintained properly. The KYC check at the casino will have the players provide the casino with a clear copy of their ID. The copy is uploaded to the player’s account, where the casino checks its eligibility and authenticity. 

Proof of Funds

If you have never played at an online casino and this is your first time gambling at a virtual establishment, the casino will not demand proof of funds as you finish your registration. However, if you aim for a position of a high roller and make large deposits at your favorite online casino, the casino’s regulations demand proof of the legality of your income. The bank statement will confirm the fact you are playing with legal funds and not borrowing money from others or gambling with cash that is somehow illegal.

Address Proof

The casinos don’t usually ask for proof of address unless the physical address in your passport differs from the one you are currently at. While some of us may never change our physical address and reside in the same location, most people will frequently have their personal addresses changed throughout life. For this reason, the casino will ask for a statement issued by your bank with your physical address mentioned. Another alternative is to provide the casino with a standard utility bill with your home address indicated in the bill. 

Speed Up Your KYC Process

No one is safe from delays in KYC verification, including Iceland players. To speed up the process, apply the following measures:

  • Only submit clear and relevant documents. To make your KYC process as fast as possible, provide clear scans of all your identity documents. Make sure the documents are easy to decipher and the images are not blurry.
  • Provide truthful and valid information. Take time to check whether your personal information at the casino matches the information in your passport and driver’s license. Any discrepancies will postpone the KYC process.
  • Prepare your ID ahead of time. If you know that the online casino is constantly performing random KYC checks for customers, have all the necessary documents stored on your desktop so you can find them easily.
  • Be responsive and proactive. If you want to accelerate the KYC process, make sure to respond to the casino’s requests in a prompt and timely manner. 

Is the KYC Process Really Safe?

If you are a passionate casino gambler who resides in Iceland, you are probably haunted by the same question that bothers every player out there: can we really refer to the KYC verification process as safe? With some casino experts claiming that KYC borders on privacy violations of individual players, it is easy to fall into the trap of thinking that KYC is indeed somewhat intrusive and should be treated with caution. However, it all boils down to the type of casino you are playing at. Selecting a reputable casino site with a license and a good reputation will guarantee that your KYC check will be nothing more than an additional requirement to ensure fair play.