Recent changes in the laws of some countries require that online casinos verify that all of their transactions are above board. In order to comply with these new legal requirements, an online casino will ask you to provide documentation that proves who you are and also provide information about the source of your funds as part of their casino verification process.
The majority of online casinos need to comply with the KYC (Know Your Customer) laws and regulations as part of their license. As a result of this, they will request all new players to provide documents that prove their identity and where they live. Documents that are often requested for identity proof include:
- A valid passport
- A valid national ID card (if this applies)
- A valid driving license
- A recent utility bill or bank statement for proof of address
If you are from a country where you need to prove your source of funds, such as the United Kingdom, then usually the online casino will ask you to provide some bank statements and possibly recent credit card bills.
The verification process that a lot of online casinos go through to comply with KYC regulations often seems “over the top” to players. But these rules are there to prevent illegal activities such as credit card fraud, money laundering and underage gambling.
Crackdown on money laundering activities
A lot of governments are cracking down on money laundering activities. In the past, casinos have been a prime target for money laundering. Usually, the casino was not aware that they were being used for illegal money laundering activities. This was not acceptable to governments, so they decided to crack down on the way that online casinos operated.
In the UK, the Gambling Commission there requires that all online casinos have to verify the sources of funds that their players use. This is also being introduced in other countries too as a way to crack down on money laundering.
For online casinos to verify sources of funds, they can either do this when a new player first registers, or they can request verifications when the new play requests a withdrawal. Sometimes, online casinos will require that a player verifies their source of funds if they make a deposit over a certain limit.
All of this keeps governments happy and it is something that online casinos need to deal with in the best way that they can. But from a player’s point of view, it is seen as unnecessary and a waste of time and effort. If you do not want to go through a verification process then you should check out no ID casinos and see if any of these meet your requirements.
Why do online casinos ask you to prove the source of your funds?
There are a number of reasons why an online casino may request you to verify your source of funds. We have already stated that sometimes this is because governments and license regulators require this. They want to ensure that all of the online casino transactions are legit and that there are no opportunities for money laundering activities.
Another reason that an online casino may request you to verify your funding source is when you want to make a large deposit. When a new player wants to make a large first deposit, the suspicions of the online casino can be aroused. This can be true if the initial deposit is small and subsequent deposits are larger.
An online casino will often set thresholds for deposit amounts. If these are triggered then they will initiate another KYC process to ensure that the player has a legitimate funding source. In the United Kingdom, deposits of £2,000 or more will usually arouse suspicion. The threshold may be lower than this for some online casinos.
Not all online casinos will have these thresholds. If a player has satisfied them that their funding sources are legitimate then they will allow them to make any size of deposit within any limits that apply. You should be able to check what limits apply to deposits on the website of the online casino. Usually there is a minimum and maximum deposit limit specified.
If you are lucky enough to experience a big win at an online casino then this may require the need to prove your source of funds. This often annoys players. The online casino was happy to accept their deposit and are now questioning their withdrawal request. Although this is understandable, it will not stop some online casinos insisting on proof of funds verification.
There is nothing that you can do about this if it happens. To receive your winnings, you will have to prove your source of funds. It doesn’t matter if you have been registered with the online casino for a long time. Your large win triggers a threshold and they will ask for further verification.
If an online casino suspects that there are fraudulent transactions occurring in your account then they are within their rights to request proof of funds. Often, regulators will request proof documentation from the owners of online casinos where large deposits and wins take place.
If you want to continue playing at that casino you will need to send these documents.
That requirement is needed because of the gambling commission.