KOMPLI-GLOBAL
data providers to verify a player’s identity. Historically, the two main considerations in the industry have been: driving the cost of this compliance down; and increasing the number of players to pass these ‘tick-box’ checks (known as match rates). Common sense tells us that these two aspirations are mutually exclusive, and the resulting outcome will be inaccurate and insufficient due diligence. The use of traditional data aggregator KYC providers is no longer adequate or fit for purpose to meet today’s legislation. The regulations and prevention of money laundering guidelines now require operators to know about the behaviour, history and reputation of the player along with source of funds, affordability and protection of vulnerable people. Operators need to move with the times and adopt the latest technology to help them meet their obligations. However, most operators wrongly assume that changing their outdated systems will increase their costs. On the contrary, new AI-based solutions will drive efficiencies, meet regulatory compliance, social responsibility and prevent prosecution and over time decrease compliance costs.
In terms of modern methods, including those developed by Kompli-Global, how does automation and AI work, and how can it ensure compliance? Regulated entities (those needing to comply with financial crime laws) now need to establish the integrity and suitability of their customers and ensure that they are not ‘bad actors’. Finding this type of reputational information needs deep searches of published data. This research would be extremely time consuming for a human to conduct and the reduction of false positives from the tsunami of data now available on the internet. AI can do the heavy lifting here, by searching the web, filtering the results and presenting only the relevant information back to an analyst to enable a quick, accurate decision.
How important is it to know players’ backgrounds in depth, and what’s the best approach for achieving this? Knowledge of a player’s background helps to build a profile of the player. Knowledge of factors such as source of funds provide the operator with an indication of the types of bets and deposits that are financially feasible for a particular player. Without knowledge of such indicators, a player cannot be monitored effectively and, therefore, potential
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acts of money laundering cannot be identified. This is also important for identifying problem gamblers, as a player can be approached if there is an indication that they are spending beyond their means.
Do you think that more can be done at a higher, regulatory level to combat money laundering and criminal activity?
The Gambling Commission could identify best practice and encourage the adoption of technology to solve practical issues. It does not need to endorse particular companies, but it could, for example, ask about the use of technology and how deep searches are carried out with a view to recommending the use of technology to make such searches more efficient. Training and requisite skills are also areas for the Commission to audit. The relevant staff should be answering the question; does this transaction or series of transactions make sense based upon the identity information and resulting profile? The extremely high volume of players who engage in online gambling means it can be onerous for operators to conduct the necessary screening and monitoring of all of their customers. Regulators need to understand and embrace new technologies, advocate use of AI and how these solutions can make compliance a low-cost reality – so the carrot rather than just the stick approach may serve the Gambling Commission and the operators better.
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