AML Act : An International Law Governing the Global Gambling Industry

When looking to invest in an online casino business, have awareness that the global gambling industry is under rigid scrutiny for money laundering activities. Gambling regulators in all jurisdictions require all online gambling operators to comply with an international law known as the Anti-Money Laundering (AML) Act.

Online casino operations are known to be easy targets of criminal organizations that move money from country to country, as a way of laundering or making legitimate, large sums of cash from or for illicit operations, including terrorist acts. That is why nearly all countries have legislated specific guidelines and procedures aimed to implement measures as their local versions of the AML Act. That way, all channels through which illegal organizations move their money will be compelled to handle their financial transactions legally and with utmost care.

That being the case, even if an online casino operator offers offshore online gambling products and services in different countries, the operator is still under obligation to abide with the AML Act in every jurisdiction. That denotes that even if an online gambling firm is registered and licensed by a country that has less rigid gambling laws, the company must still abide by the anti-money gambling laws of the countries where their customers are located.

Knowing and Identifying Potential Online Casino Customers in Indonesia

The most basic compulsory procedure that online casino operators must follow to protect its site against illicit financial activities is to “Know Your Customer/Client (KYC).“

In Southeast Asian countries like Indonesia, where offshore online casino operators offer judi slot online to customers, strict compliance with the AML Act is a must. While an online casino may use an Indonesia-based agent to recruit customers, the agent is the online casino’s first line of defense against illicit financial activities. As much as possible, the agent must recruit only those he or she fully knows and trusts, and at the least, those whom the agent has verified as a person not involved in criminal or terrorist activities.

As part of the identification verification procedures, a customer service staff of the online casino, partners with the Indonesia-based agent. The customer service personnel processes the account registration, as well as evaluates and further verifies the identity of customers recommended by the agent. Still, it is possible that a registration will not be immediately rejected, if in case the registering person is flagged as a potentially risky customer.

However, online casinos that accept such offshore applicants as a member, must run on a platform capable of monitoring and detecting any large sums of money being transacted, particularly by those flagged as having dubious backgrounds. When called for and as required by international AML guidelines, any suspicious financial activities must be reported to appropriate authorities.