Interactive AML COMPLIANCE
regularly searching for “adverse intelligence” on both new and existing clientele. Tis means searching the so-called “Deep Web”, as well as traditional and digital news media, international corruption watchlists and other such databases, to find any information that may tie the individual in question to money laundering, either directly or through links to known criminals.
In addition to performing the actual searches, companies must also show evidence that they have taken these steps, with detailed audit trails and regular reporting.
LIVING IN THE PAST Despite all of these legal requirements, it is clear
that far too many companies in the gaming industry are failing to fully search the information available to them to verify their customers’ identities, using outmoded KYC processes that are often slow and ineffective. Many still depend largely on outdated manual searches using traditional search engines such as Google for this mandatory due diligence.
As a result of these shortcomings, vital information is often missed, leaving significant gaps in gaming companies’ defences that money launderers – and problem gamblers – are able to exploit. Failing to tackle these gaps leaves gaming operators at risk of significant financial penalties, just like Paddy Power Betfair.
TIGHTENING OUR DEFENCES Carrying out KYC checks on every single
customer is a big challenge for any organisation. However, technology has evolved considerably in recent years, and advanced “regulatory technology” (RegTech) solutions are already available to support gaming companies in making the necessary KYC checks effectively.
Implementing innovative RegTech incorporating innovative Machine Learning (ML) and Natural Language Processing (NLP) technology, in particular, can go a long way towards supporting gaming companies in achieving this goal. It can do the heavy lifting in searching for adverse information on customers, optimising and automating AML processes in order to help
Incorporating such RegTech into their compliance processes can go a long way towards helping gaming operators ensure easy customer onboarding and an enjoyable user experience for customers, while also ensuring they are doing their utmost to protect themselves from complicity in financial crime.
NO NEED TO RISK YOUR BUSINESS It is absurd that in 2018 so many due diligence
teams in the gaming industry are still using inefficient, inadequate 20th Century methods to tackle modern financial crime. RegTech has advanced so much in the last few years, there is no longer any excuse for gaming companies not to have the tools in place to identify customers with links to bad actors implicated in criminal behaviour.
Armed with such solutions, AML investigators in the gaming sector can ensure they are able to easily and effectively uncover adverse information on new and existing customers without expending excessive time and energy.
Search engine checks can be very time consuming and labour intensive as well. To streamline the process, it is not uncommon for AML officers outside the gaming industry to use “search strings” hoping to target negative news and reduce irrelevant results. These may help, but they are still not enough. Google, for instance, places limits on the number of search words allowed in each string, which leaves investigators either hoping their search strings are good enough, or conducting multiple searches with different search engines, using yet more time and resources.
Tese commercial search engines are certainly not designed for AML purposes and only skim around 4% of indexable content contained online. Tey are incapable of exploring the “deep web” for non-indexed data – which, in fact, accounts for up to 96% of all the information available on the internet.
Such search engine checks can be very time consuming and labour intensive as well. To streamline the process, it is not uncommon for AML officers outside the gaming industry to use “search strings” hoping to target negative news and reduce irrelevant results. Tese may help, but they are still not enough. Google, for instance, places limits on the number of search words allowed in each string, which leaves investigators either hoping their search strings are good enough, or conducting multiple searches with different search engines, using yet more time and resources.
P76 NEWSWIRE / INTERACTIVE / MARKET DATA
gaming companies meet rigorous regulatory requirements while saving time and resource.
Kompli-Global’s SaaS search and screening platform, kompli-IQ, for example, for instance, can perform multiple in-depth searches for adverse information simultaneously, helping human compliance managers to identify high- risk individuals quickly and efficiently. It can search data from around the world in every major language, scoring and ranking sources for reliability to minimise the risk of false positives and highlight important information to help businesses like Paddy Power make the right decisions.
Working 24 hours a day, seven days a week, 365 days a year, the kompli-IQ technology can also alert compliance managers as soon as adverse information is found, so they can respond quickly and effectively without delay to protect customers and their own brand.
Gaming operators have driven their business growth via digital channels to attract new consumers. It’s time they avail themselves of technology to shore up their due diligence processes too. Failure to do so means they are simply gambling away their profits, with negative implications for the future of their business.
References:
[1]
https://www.independent.co.uk/ news/business/news/paddy-power-fine- betfair-gambling-commission-failures-stolen-
money-protect-customer-a8585731.html
[2]
http://www.bbc.co.uk/news/business- 43124258
[3]
http://uk.businessinsider.com/888-casino- record-fine-problem-gamblers-ukgc-gambling -commission-2017-8/
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