Time changes from playing on the ground to having fun in virtual reality games. The gaming industry is availing various perks of the digital revolution. Now games can onboard players from anywhere, and they can play virtually against anyone worldwide. As digital gaming provides multiple benefits, it also increases the chance of money laundering through online platforms.
Financial regulators make it compulsory for the gaming community to comply with AML gaming regulations. Staying put with Anti-Money Laundering (AML) laws keeps the financial ecosystem secure and protected. Gaming scams can be reduced by an effective AML system.
What is KYC in Gaming?
KYC is referred to as the know-your-customer. The KYC solution help businesses confirm the customers’ identities. It is a simple process to check the legitimacy of the verification papers and facial recognition by scheduling a video call. However, as technology brings innovations, it also makes scammers and money launderers clever. Now they know more loopholes than before, which helps them launder money.
The digital gaming sector is generating $248.40 billion in revenue by 2021, the gaming industry is predicted to generate $521.60 billion in revenue by 2027. The vast amount of money flow makes the gaming industry valuable for scammers and money launderers.
Compliance with CFT and AML
Know-your-customer (KYC) is the umbrella of all regulations as it helps comply with CFT regulations and AML gaming laws. It also assists gaming platforms in unmasking scammers. Complying with these regulations is a must for businesses dealing with financial transactions, and gaming is also one of those. AML gaming is compulsory for online games because it is easy for money launderers to exploit them.
Online gaming makes up 11% of the worldwide internet traffic. Gaming has a deep connection with money laundering, it is not new to associate these with each other from history. Rising cases of scams have forced authorities to make strict rules and laws for the gaming industry, which protect gaming platforms and ensure player security.
Benefits of Online AML Gaming
The biggest issue of the gaming industry has been its lack of transparency. Games owners don’t know about players. The gaming industry must utilize robust AML gaming solutions, so they can be aware of the history of gamers’ funds. Identity verification for online gaming helps platforms comply with constantly changing regulations and mitigate the risk of financial crime. The gaming companies that comply with evolving regulations ensure players’ and organizations’ security.
Gaming organizations must combat different gaming scams, including phishing attacks involving counterfeit rare items and currency. Online KYC verification enhances the gaming platform’s security against scammers. They only onboard those players who are legitimate and submit original papers, making it easy for verified gamers to trust other users during an exchange of any rare items and currency.
Game representatives can block the player’s identity if they detect illicit activities. They can not make multiple accounts using one ID with the help of AML gaming. Without instant gaming verification, organizations can not be able to protect players from scammers.
Protect Legitimate Players
The possibility of gaming scams rises due to gaming agents using the conventional approach. Due to its rigorous methods and variety, money laundering has grown to be a serious danger to the gaming industry. Players’ and the gaming industry’s reputations can be safeguarded by online game verification with KYC.
In online financial games, money launderers disguise their funding source. Criminals deposit money to exchange in virtual currency and to purchase rare items. They have a standard technique where the funds are transferred from one account to another. After sharing money, scammers withdraw money from the legitimate account.
By implementing this technique, they show the collected money in the bank is from the game. These types of online gaming scams damage the company’s reputation and negatively influence players. Unprotected online games assist criminals in abusing systems and players to proceed with their illegal activities.
Enhance Customer Experience
The traditional document verification process to comply with AML regulations is time-consuming and ineffective. It is challenging for the digital gaming industry to onboard players according to the policies. An online AML gaming software enhances the effectiveness of a verification program and is also an ideal business practice to protect companies from potential risk of money laundering.
Conclusion of AML Gaming
The gaming industry operates in a highly dynamic and fast-paced environment where new games and updates are constantly released. The speed of onboarding new players must match customer demand. Complying with AML gaming rules using digital ID verification solutions accelerates the onboarding process and provides authentic results. It helps gaming organizations onboard only legitimate individuals, prevents fraudulent activities and maintains a safe environment for all users.