Category: KYC & KYB

Welcome to our meticulously curated KYC/KYB category, a comprehensive repository dedicated entirely to the multifaceted dimensions of Know Your Customer (KYC) and Know Your Business (KYB). As we stride deeper into the digital era, the procedures around KYC/KYB have emerged as a fundamental pillar, ensuring secure and compliant operations within the financial landscape.

The articles housed in this category plunge into the complexities of KYC/KYB, discussing its inherent challenges, potential solutions, and its indispensable role in the realm of identity verification. Our articles traverse a wide array of topics, ranging from the application of artificial intelligence in customer due diligence processes to the impact of regulatory shifts on KYC methodologies. These writings cover a broad spectrum of subjects, offering relevance to businesses and professionals operating within the financial industry.

As a leading industry player in the domain of digital identity verification, Signzy stands at the helm of innovation in KYC/KYB. Our cutting-edge solutions are engineered to simplify KYC, making these procedures faster, more efficient, and notably secure.

Regardless of whether you’re a compliance officer diligently maintaining regulatory standards, a fintech entrepreneur navigating the challenging waters of the financial industry, or simply an individual interested in gaining a deeper understanding of the evolving world of KYC/KYB, our category offers a treasure trove of information and insights.

We invite you to join us on this journey of exploration as we dive into the future of KYC in the rapidly evolving digital age. Our articles aim to enlighten, inform, and provide a well-rounded perspective on the significant role that KYC processes play in today’s digital financial landscape. Welcome to a world where knowledge becomes power, and compliance becomes simplified.

KYC verification & Electronic Identity Processes in Gaming Industry

KYC verification & Electronic Identity Processes in Online Gaming Industry

Posted on | by Signzian

With the rapid rise of online gaming, companies are finding new ways to authenticate users and ensure their compliance with government regulations. As a result, online gaming industry operators have turned to Know Your Customer (KYC) verification processes and electronic identity solutions.

In this article, we will explore why KYC verification systems are crucial for online gaming companies, some of the most common methods used, and how they can help ensure compliance while providing customers with an improved user experience.

The rise of the online gaming industry

The online gaming industry has dramatically increased in recent years. market revenues are expected
to grow more than 74 billion USD by 2023, at a compound annual growth rate of 10%. This rise in popularity drives the need for KYC verification and electronic identity processes.

There are many reasons for the increased popularity of online gaming.

  1. The convenience and accessibility of these platforms are significant factors. With the advent of mobile devices, people can play games anywhere at any time.
  2. Another reason for the industry’s growth is the anonymity that it affords users. Many people who would not dream of playing games physically due to interest & other factors are happy to do so online.

The increased demand for online gaming services creates opportunities for KYC verification and electronic identity providers. These companies offer solutions that help businesses verify the identities of their customers. This is an essential process for ensuring compliance with anti-money laundering regulations. It also helps to protect businesses from fraud and other risks associated with online transactions.

The need for KYC verification in online gaming industry

As the online gaming industry grows, so does the need for KYC verification and electronic identity processes. This is because, with more people gaming online, there is an increased risk of fraud and money laundering. Having KYC verification in place helps reduce the risk of these activities.

There are several ways to do KYC verification – use of ID documents, biometric data, or even utility bills. The most important thing is that the process is secure and meets all regulatory requirements.

Having KYC verification in place helps protect the online gaming industry from fraudulent activities and also helps to build trust between businesses and their customers.

The importance of electronic identity processes in online gaming industry

In recent years, there has been a surge in online gaming. This has increased the need for KYC verification and electronic identity processes.

There are several reasons why online gaming have become so popular:

  1. The internet has made it easier than ever to access these activities.
  2. A growing number of people are willing to gamble or play games online.
  3. Many online casinos and game developers offer generous bonuses and prizes that appeal to potential customers.

However, the increase in online gaming has also led to negative consequences. One of the most severe problems is the rise of fraud and scams. As a result, many online casinos and game developers have implemented KYC verification and electronic identity processes to protect themselves.

KYC stands for “know your customer.” This process involves verifying a customer’s identity before they can access services or make transactions. In most cases, KYC verification will require customers to provide some form of identification, such as a passport or driver’s license.

Electronic identity processes refer to the use of digital technologies to verify someone’s identity. These processes can include biometric identification (such as fingerprinting) or using social media profiles to verify someone’s identity.

Implementing KYC verification and electronic identity processes have helped reduce the incidence of fraud and scams in the online gaming industry. However,

How is online gaming changing 

The internet has revolutionized the online gaming industry, making it easier than ever for people to access games and from their homes. This increased accessibility has driven up the number of people gaming online. Thus, creating a need for KYC verification and electronic identity processes. According to online gaming industry analysis, there were more than 2.6 billion gamers in the world in 2020, and this figure accounted to around 2.8 billion by 2021.

KYC verification is the process of verifying the identity of a customer or client. This is typically done by requiring the customer to provide identification, such as a passport or driver’s license.

In the case of online gaming, KYC verification can also be done electronically. In this, the customer provides personal information such as their name, date of birth, and address. Electronic identity processes verify that a person is who they say they are. Biometrics, such as fingerprint or iris scanning, or by requiring the person to provide some form of identification – passport or driver’s license. In the case of online gaming, electronic identity processes is used to verify that the person is over 18, which is required by law to play certain types of games.

The increased popularity of online gaming has led to a need for more robust KYC verification and electronic identity processes. By implementing these processes, businesses can ensure that their customers are who they say they are, which helps to protect both.

The future of online gaming industry

As online gaming continue to grow in popularity, so does the need for KYC verification and electronic identity processes. This is because increased online gaming activity is driving the need for more secure and efficient ways to verify the identity of players.

KYC verification and electronic identity processes help to ensure that only legitimate players can access online gaming platforms. This helps to protect both the player and the forum from fraud and other illegal activity.

There are a number of different ways in which KYC verification and electronic identity processes can be implemented. For example, many platforms now require players to provide a government-issued ID or passport to register for an account. Others may use biometric data such as fingerprints or iris scans.

Whichever method or combination of methods is used, it is clear that KYC verification and electronic identity processes are here to stay. In addition, as online gaming continue to grow in popularity, so will the need for these secure and efficient methods of verifying player identity.

About Signzy

Signzy is a market-leading platform redefining the speed, accuracy, and experience of how financial institutions are onboarding customers and businesses – using the digital medium. The company’s award-winning no-code GO platform delivers seamless, end-to-end, and multi-channel onboarding journeys while offering customizable workflows. In addition, it gives these players access to an aggregated marketplace of 240+ bespoke APIs that can be easily added to any workflow with simple widgets.

Signzy is enabling ten million+ end customer and business onboarding every month at a success rate of 99% while reducing the speed to market from 6 months to 3-4 weeks. It works with over 240+ FIs globally, including the 4 largest banks in India, a Top 3 acquiring Bank in the US, and has a robust global partnership with Mastercard and Microsoft. The company’s product team is based out of Bengaluru and has a strong presence in Mumbai, New York, and Dubai.

Visit www.signzy.com for more information about us.
You can reach out to our team at reachout@signzy.com

Vendor KYC Verification: Verify Your Vendors Quickly and Easily!

Posted on | by Signzian

The logistics and supply management industry have rapidly evolved over the last decade. With more complex delivery chains, stricter regulations, and a more significant focus on security, it’s no wonder that businesses are looking for ways to speed up processes and improve efficiency. One of the most important steps in this process is vendor KYC (Know Your Customer) verification. This step ensures that businesses know who they are dealing with regarding vendors and suppliers. In this blog post, we will discuss what Vendor KYC Verification is and how it impacts logistics and supply chain management.

Businesses that engage suppliers to provide goods or services can quickly become victims of Vendor Impersonation Fraud. Sophisticated criminals infiltrate a trusted vendor or somebody pretending to be them, thereby risking your business. Armorblox’s research team discovered a 73% increase in financial fraud email threats from 2021 to 2022. Financial fraud attacks accounted for 44% of sophisticated, targeted crimes, including wire fraud, invoice fraud, and vendor fraud.

What is Vendor KYC Verification?

Vendor KYC verification is verifying the identity and credentials of a vendor or supplier. This verification can be done through various means, such as third-party background checks, references, and documentation. Vendor KYC verification aims to ensure that the vendor is who they say they are and that they have the experience and credentials necessary to provide the services or products they claim to offer.

Third-party background checks are one of the most common methods of vendor KYC verification. This check can be conducted by an outside firm or the company itself. References are another standard method of vendor KYC verification. When checking references, it is important to verify that they are from legitimate sources, such as past clients or business partners. Documentation is also often used for vendor KYC verification. This may include identification documents, licenses, certifications, and other forms of proof that the vendor is qualified to do business with your company.

Vendor KYC verification is important in doing business with new suppliers or vendors. Verifying their identity and credentials can help protect your company from fraud or scams.

Why is Vendor KYC Verification important in logistics & supply management?

There are many reasons why vendor KYC verification is important in logistics and supply management.

  1. It helps to ensure that the vendor is who they say they are and that they are legitimate. This can help to prevent fraud and other issues. 
  2. It helps to ensure that the vendor has the proper licenses and permits for their business. This can help to avoid delays or other problems with shipments. 
  3. It can help build trust between the company and the vendor, leading to better relationships and more efficient operations.

A first layer of protection for companies comes from supply chain risk management and due diligence, and due to the rise of SaaS and outsourcing, good risk awareness is essential. The Global Fraud and Risk Report, “Mapping the New Risk Landscape, “published by Kroll in conjunction with Forrester Consulting in 2019, highlights global corporations’ biggest risks.

Globally, 28% of fraud was committed by external parties (suppliers & vendors), an increase of 10%. 68% of global companies consider fraud by external parties a high or significant concern.

According to KPMG’s Global Banking Fraud Survey, released in May 2019: Fraud recoveries were less than 25% of fraud losses, according to over half of the survey respondents. This low rate emphasizes the importance of prediction and prevention. 

Thus, companies should begin to consider implementing a tool and necessary workflows as vendor fraud grows in prevalence as a threat to many corporations.

The benefits of Vendor KYC Verification

KYC verification is a process that helps to ensure that your customers are who they say they are. This can be beneficial for several reasons:

  1. It helps to prevent fraud: By verifying the identity of your customers, you can help to prevent fraudulent activity. It becomes much harder for someone to commit fraud if they have to provide their real identity upfront.
  2. It builds trust: Customers who have been through a KYC verification process are more likely to trust your company. This is because they know that you take security and compliance seriously.
  3. It streamlines processes: A KYC verification process can help streamline other business processes, such as onboarding new customers or processing payments.

How Can Signzy Help with Vendor KYC Verification?

Signzy has a one-stop solution when it comes to verification. It provides a simple plug-and-play API solution. With just the vehicle number, you can get fitness details, Permit info, PUCC check, Insurance details, and much more! The same goes for authenticating the driver’s license.

Signzy can provide a complete user journey and simplify your workflow while it is automated. A generic survey conducted by logistic partners and Signzy showed that automated workflow helped the logistic industry by 26%, which earlier with the manual process was 11%. 

Our three APIs that play a pivotal role in Vendor KYC Verification are:

Bank Account Verification API: With it, you can verify not just the validity of bank accounts but also the name and details of the user while leveraging the right technology for the job. In addition, the AI-driven API is highly customizable and can be integrated easily with your processes.

RC Verification API: Signzy’s Registration Certificate Verification Process allows onboarding of verified vehicles in no time with utmost accuracy & reliability (server providing 99.9% uptime).  Know more about the benefits it offers. 

GST Verification API: Our GST API validates the authenticity of a business or your partner as an essential aspect of easing and making GST compliances hassle-free. It helps you to

  1. Extract GST details, including Name, GSTIN, and address of the business, from the GST certificate.
  2. Search GST details of the entity using GSTIN and PAN. 
  3. View and track the GST returns of the entity.

Conclusion

Vendor KYC verification is essential to logistics and supply chain management. It helps to ensure the accuracy and reliability of the information, making it easier for businesses to monitor their vendors and ensure they comply with all applicable regulations. As a result, organizations can protect themselves from potential liability by implementing a comprehensive vendor KYC verification process while improving transparency across their supply chains.

We bring you to speed, security, reliability & ease. You can leverage artificial intelligence, optical character recognition, and other best-of-breed technologies – everything you need to scale successfully.

About Signzy

Signzy is a market-leading platform redefining the speed, accuracy, and experience of how financial institutions are onboarding customers and businesses – using the digital medium. The company’s award-winning no-code GO platform delivers seamless, end-to-end, and multi-channel onboarding journeys while offering customizable workflows. In addition, it gives these players access to an aggregated marketplace of 240+ bespoke APIs, easily added to any workflow with simple widgets.

Signzy is enabling ten million+ end customer and business onboarding every month at a success rate of 99% while reducing the speed to market from 6 months to 3-4 weeks. It works with over 240+ FIs globally, including the 4 largest banks in India, a Top 3 acquiring Bank in the US, and has a robust global partnership with Mastercard and Microsoft. The company’s product team is based out of Bengaluru and has a strong presence in Mumbai, New York, and Dubai.

Visit www.signzy.com for more information about us.
You can reach out to our team at reachout@signzy.com

 

 

How To Complete reKYC for DEMAT/Trading Accounts?

Posted on | by Signzian

The digital reKYC process adds a new layer of security to financial transactions and trading accounts. It is an essential part of the Know-Your-Customer (KYC) process, to which banks and other financial institutions must comply with regulatory requirements. Re-activating a trading account through the digital reKYC process can be tricky, but it doesn’t have to be. This blog article will discuss how you can successfully navigate the process and easily re-activate your trading account through reKYC. 

Why is reKYC of DEMAT/Trading accounts important?

When you open the DEMAT account, the DP / broker will ask you to fill up a KYC form along with your client agreement form. KYC requires basic paperwork and the submission of essential documents. It also requires originals for complete verification.

KYC norms were put out by the RBI in 2002 and have been adopted by SEBI for all investment-related activities. This includes opening a trading account, DEMAT account, mutual fund investments, etc. The idea was to cut down on corrupt practices. Some examples are money laundering, acting as fronts for entities, trading in cash without audit trails, fraud, and financing of anti-national activities.

The same goes for reKYC process. It is really important to go for reKYC trading accounts for several reasons:

  1. The reKYC process will allow the account holder to continue to trade securities and access their account information smoothly. 
  2. It will help to ensure that the account holder’s personal information and security settings are up to date. 
  3. It will help to keep the account active and in good standing with the broker or exchange.

What is Digital reKYC?

Digital reKYC is verifying a customer’s identity using online methods such as video KYC, facial recognition, or government-issued ID. This process aims to make it easier for customers to get their accounts reinstated after they have been suspended for suspicious activity.

This process has become increasingly popular as it offers many advantages over traditional KYC methods. For one, it is much faster and more convenient for customers. Additionally, it helps to reduce costs associated with account reactivation.

A visit to the bank branch is not needed to update KYC: RBI

In its latest circular, the Reserve Bank of India (RBI) has said that If customers have already provided the appropriate documents, they are not required to visit a bank branch to update their ‘know your customer’ (KYC) details. In place of submitting KYC information, they can submit a self-declaration by email, registered mobile number, or any other digital channel if there has been no change. Banks should offer customers the ability to self-declare different aspects through various non-contact methods. These can include registered email addresses or mobile numbers, ATMs, digital channels such as web or app banking, and letters. If the address needs updating only, customers should let their bank know via any of these channels, after which it will be verified within two months.

Advantages of Digital reKYC

The advantages of the Digital reKYC process are many and varied, but some of the most notable advantages include the following:

  1. A more efficient and streamlined process: The Digital reKYC process is much more efficient than the traditional KYC process, meaning that it can be completed in a fraction of the time.
  2. More accurate data: Since the Digital reKYC process relies on digital data sources, the data collected is usually more accurate than that collected through traditional methods.
  3. Increased security: The Digital reKYC process is also much more secure than traditional KYC processes due to the increased use of encryption and other security measures.

Key steps in the reKYC documentation process for the DEMAT/Trading account

  1. The first step is filling out the KYC form if you are a new investor and opening your DEMAT account for the first time. The application forms require demographic information. This can be named residential address, office address, joint account holder details, account nomination, etc.
  2. The next step of the investor onboarding process is to present your identity proof. A PAN card is mandatory in this regard. You may also be asked to submit additional government-authorized proof. This can be a passport, driving license, voter ID, Aadhaar, etc.
  3. The third step involves submitting proof of residential address. The document should include the current address in the exact format. You can provide utility bills with link documents. Other documents, like bank statements, company letters, etc., can also be linked.
  4. Finally, you must submit a copy of your canceled Cheque. The account holder’s name must be embossed on the Cheque leaf. This is to verify your IFSC code and account details.

Conclusion

Re-activating a trading account through the Digital reKYC process is simple and efficient. By following these three steps, you’ll be able to get back into trading with minimal fuss quickly. The process takes just a few minutes and is completed from the comfort of your end customer’s home. 

About Signzy

Signzy is a market-leading platform redefining the speed, accuracy, and experience of how financial institutions are onboarding customers and businesses – using the digital medium. The company’s award-winning no-code GO platform delivers seamless, end-to-end, and multi-channel onboarding journeys while offering customizable workflows. In addition, it gives these players access to an aggregated marketplace of 240+ bespoke APIs, easily added to any workflow with simple widgets.

Signzy is enabling ten million+ end customer and business onboarding every month at a success rate of 99% while reducing the speed to market from 6 months to 3-4 weeks. It works with over 240+ FIs globally, including the 4 largest banks in India, a Top 3 acquiring Bank in the US, and has a robust global partnership with Mastercard and Microsoft. The company’s product team is based out of Bengaluru and has a strong presence in Mumbai, New York, and Dubai.

Visit www.signzy.com for more information about us.
You can reach out to our team at reachout@signzy.com

Gambling & Money Laundering

Gambling & Money Laundering – How to tackle it?

Posted on | by Signzian

An issue that has been ignored for too long is Money Laundering via Gambling in the casino system. It has now become a recurring issue, as gambling giants like Entain recently received a fine of more than £17 million for violating anti-money laundering protocols. The failure of these big gambling players to clamp down against money laundering not only contributes to the proliferation of criminal activity such as human trafficking and illicit arms dealings, but it also highlights how casinos now serve as a platform for modern slavery.

Money laundering is the illegal process of concealing the origins of money obtained from criminal activities. It is a severe crime, and yet, sadly, many casinos still fail to tackle it effectively. From a lack of proper regulations to inadequate tracking systems, this article will discuss why casinos still need to crack down on money laundering and how they can tackle it. We will also discuss the implications for businesses and what measures should be taken to prevent money laundering in the future.

Money laundering in Casinos

Global gambling-industry financial penalties amounted to approximately $128,913,840 in 2022, up 166% from $48,642,992 in 2021, according to USA-Casino.com. As of October 2022, the UK’s gambling regulator had charged 16 operators $48m (£45m).

Casinos have long been associated with money laundering due to the large amounts of cash that change daily. Despite this, casinos have failed to crack down on money laundering, and the problem seems to be getting worse. 

There are several reasons why casinos have failed to tackle money laundering. A few majors are 

  1. Lack of tracking of the fund source – because cash is often used. 
  2. Lack of AML policies. 
  3. Being located in countries with lax financial regulations makes it easy for criminals to launder money 
  4. Inadequately trained employees to spot money laundering signs and stop the same. 

So how can casinos crack down on Gambling & Money Laundering?

  1. They need to put better policies and procedures in place to prevent it from happening in the first place. This includes proper customer due diligence, robust Know Your Customer (KYC) procedures, and more effective monitoring of transactions. As former US gambling regulator Richard Schuetz spoke with USA-Casino.com and said, “Given the inevitable increase of proliferation of online gambling in 2023, one can expect more regulations, and of course more casino and gambling industry fines”.
  2. Casinos need to do more to train their staff to spot the signs of money laundering. This training should cover what to look for when customers withdraw or deposit large amounts of cash and how to report suspicious activity.
  3. Casinos should consider using modern technology. 

The methods used by criminals

Though casinos have been put under increased pressure to stop money laundering, they continue to face many challenges. For one, criminals are constantly finding new ways to launder money, making it difficult for casinos to keep up. Moreover, many casinos still need to do more to crack down on, leaving themselves vulnerable to attack.

So what can casinos do to protect themselves from money launderers better? For starters, they need to be more proactive in identifying suspicious activity. This means being on the lookout for things like large cash deposits or withdrawals, frequent wire transfers, and patterns of betting that seem designed to evade detection.

Additionally, casinos need to ensure they have robust anti-money laundering policies and procedures. These should include KYC (know your customer) checks, reporting suspicious activity to authorities, training staff on the spot, and reporting red flags. By taking these steps, casinos can make it much harder for criminals to use them to launder money.

The Casino’s responsibility

In recent years, casinos have come under increased scrutiny for their role in money laundering. This is because casinos are often used to clean dirty money obtained through illegal activities.

Casinos have a responsibility to ensure that they are not being used to launder money. However, they have failed to crack down adequately on this activity. This is partly because casinos are often reluctant to report suspicious behavior to the authorities for fear of losing customers or damaging their reputation.

There are steps that casinos can take to tackle money launderings, such as better training for staff, improved customer due diligence, and more substantial reporting procedures. However, more must be done to prevent casinos from being used to clean dirty money.

The challenges of combating Casino’s money laundering

Although casinos are some of the most heavily regulated businesses worldwide, they are still struggling to combat money laundering effectively. The challenges are numerous and include both institutional and operational challenges.

Institutional challenges include that many casinos are owned by large, publicly-traded companies, making it difficult to implement adequate anti-money laundering policies. These companies are often reluctant to invest in compliance because it is not revenue-generating and can be seen as a cost center. In addition, there is often a lack of coordination between regulatory agencies, making it challenging to develop a cohesive strategy for combating money laundering.

Operational challenges include that casinos deal with large amounts of cash daily, making it easy for criminals to launder money through them. In addition, many casino customers are international visitors who may be using illicit funds to gamble. This makes it difficult for casinos to vet their customers and identify suspicious activity correctly.

Despite these challenges, there are some things that casinos can do to combat money laundering better. These include increasing transparency around ownership structures, investing in compliance functions, and developing better customer due diligence processes.

Solutions to tackle money laundering in Casinos

Money laundering is a serious problem for casinos. Casinos must implement better policies and procedures to crack down the same. Here are some solutions to tackle:

  1. Improve Know Your Customer (KYC) Procedures

Casinos need to improve their Know Your Customer (KYC) procedures. KYC is the process of identifying and verifying the identity of customers. This is important because it helps casinos ensure they are not doing business with criminals or terrorists.

  1. Implement Better Record-Keeping Practices

Casinos need to implement better record-keeping practices. This means keeping track of all transactions, both incoming and outgoing. This will help identify any suspicious activity.

  1. Use Technology 

Various technologies can be used to help combat money laundering. For example, casinos can use software that flags suspicious activity. They can also use data analytics to identify patterns of behavior that may be associated.

  1. Cooperate with Law Enforcement Agencies

Casinos should cooperate with law enforcement agencies in order to crack down on. This includes sharing information about suspicious activity with the authorities.

Conclusion

Money laundering is a serious problem for casinos and other gambling establishments, as it has the potential to lead to criminal activities. However, by investing in stronger AML systems and tightening their compliance regulations, casinos can reduce their chances of getting involved in such frauds. Additionally, they should also train staff on identifying suspicious activity and take steps toward improving customer verification processes. By accepting these necessary measures, casinos can protect themselves from being used as vehicles for money launderers while allowing customers peace of mind that all transactions are carried out legitimately.

A more proactive approach can detect and prevent money laundering. This can be done through improved customer due diligence practices and enhanced internal processes such as reporting suspicious activity immediately. With increased vigilance, casinos can ensure they remain compliant with regulations while reducing the threat of criminals using their services for illegal activities.

The latest AML onboarding solutions can help casinos prevent their operations from becoming dirty money laundering channels by tackling common AML malpractice. Technology can be the winning jackpot to clean up casino operations.

About Signzy

Signzy is a market-leading platform redefining the speed, accuracy, and experience of how financial institutions are onboarding customers and businesses – using the digital medium. The company’s award-winning no-code GO platform delivers seamless, end-to-end, and multi-channel onboarding journeys while offering customizable workflows. In addition, it gives these players access to an aggregated marketplace of 240+ bespoke APIs that can be easily added to any workflow with simple widgets.

Signzy is enabling ten million+ end customer and business onboarding every month at a success rate of 99% while reducing the speed to market from 6 months to 3-4 weeks. It works with over 240+ FIs globally, including the 4 largest banks in India, a Top 3 acquiring Bank in the US, and has a robust global partnership with Mastercard and Microsoft. The company’s product team is based out of Bengaluru and has a strong presence in Mumbai, New York, and Dubai.

Visit www.signzy.com for more information about us.
You can reach out to our team at reachout@signzy.com

Written By:

Shraddha is a passionate Digital Marketer and a versatile leader, working as the Director of Marketing at Signzy. She is a goal-driven professional with excellent innovative skills. Having 11+ years of experience across industries including travel, SNV, healthcare, and Fintech, Shraddha considers herself a self-empowered and self-driven individual ready to take on challenges and proactively rise to occasions in crisis. A professional who ardently believes in the right work-life balance, she ensures to spend quality time with her family. This has a positive effect on her professional life and pursuits.

KYC for Online Gaming Platforms

Why Mandatory KYC for Online Gaming Platforms?

Posted on | by Signzian

Mandatory KYC for Online Gaming Platforms – is what the Ministry of Electronics and Information Technology has drafted amendments to the Information Technology (Intermediary Guidelines and Digital Media Ethics Code) Rules, 2021. It states that due to rapid growth in online gamers, mandatory KYC for Online Gaming Platforms & gamers is to guarantee that Gaming Companies adhere to Indian laws and provide users with protection against potential harm.

Gaming has become a part of everyday life for many people, from casual mobile games to more hardcore console and PC gaming. As the popularity of gaming continues to grow, so does the importance of having an appropriate level of safety and security for gamers.

In this blog post, let’s explore what this proposal entails and why it is important. We will also discuss how it may affect both casual and professional gamers.

What is the government proposing for Online Gaming Platforms?

The Ministry of Electronics and Information Technology (MeitY) proposed an amendment to bring online gaming under the ambit of the Information Technology (Intermediary Guidelines and Digital Media Ethics Code) Rules, 2021

The amendments seek to ensure due diligence from online gaming intermediaries so that users are not exposed to any activities breaching Indian law – such as gambling or betting – and also require a registration mark on all online games registered by self-regulatory bodies.

The Draft Rules

  1. A gamer must be informed of all online games offered by the gaming intermediary, as well as its policy regarding withdrawals and refunds of deposits made with the expectation of winnings. Also, how winnings will be determined and distributed, as well as the fees the user will have to pay for each game. 
  2. There should be a mandatory know-your-customer norm for verification (KYC).
  3. A user will need to be aware of the potential for addiction and the financial risks associated with each game.
  4. As part of the registration process of the game, the self-regulatory body must set up criteria for its content to protect the gamer from harm, including self-harm.
  5. Only games that are approved by the self-regulatory body will be permitted to operate legally in India.
  6. Five members will create the self-regulatory body’s board of directors, with expertise in online gaming, public policy, IT, psychology, and medicine.
  7. It is responsible for ensuring that the registered games do not contain anything that is not in the interest of India’s sovereignty, integrity, defense, security, friendly relations with foreign countries, or public order or that incites a cognizable offense.
  8. The Centre should be informed about the online games registered by all self-regulatory bodies, along with a report detailing the criteria for registering a particular game.

Why is there a need for such rules?

It is for protecting users from potential harm caused by skill-based games. 

  1. Innovation: As online gaming platforms are getting regulated as intermediaries and are subject to due diligence requirements, the online gaming sector will be promoted and innovation will be encouraged.
  2. Women Gamers Safety: Approximately 40 to 45% of Indian gamers are women, which makes keeping the gaming ecosystem safe all the more important.
  3. Because they generate revenue that needs proper regulation: In 2025, the Indian mobile gaming industry is to generate $5 billion in revenue. The industry grew at a CAGR of 38 percent between 2017 and 2020, versus 8% in China and 10% in the US.
  4. Credibility & Transparency: In addition to ensuring greater transparency, consumer protection, and investor confidence, this framework will boost the legitimate domestic online gaming industry.

What are the pros of KYC for Online Gaming Platforms?

The proposed mandatory KYC for Online Gaming Platforms has generated a lot of debate, with some people arguing that it is a necessary step to prevent underage gaming and others asserting that it will infringe on the privacy of gamers. Here, we take a look at the pros of the proposed policy: 

1) It would help to prevent underage gaming & Fraud: The proposed policy would require online gamers to verify their age before being able to play, which would help to prevent minors from accessing age-inappropriate content.

2) It could help combat cheating: By mandating age verification, it would become more difficult for people to create multiple accounts to cheat in online games.

3) It would promote responsible gaming: Making online gamers verify their age would encourage them to play responsibly and not engage in excessive gaming.

Our take

The government’s proposing mandatory KYC for Online Gaming Platforms & gamers is a step in the right direction toward protecting citizens from online threats and fraud. With the implementation of this measure, users can be assured that their identities are secure when engaging with other players or playing games online. It will also help prevent illegal activities such as money laundering and identity theft which have been particularly rampant on gaming websites lately. In essence, this proposed measure could be immensely beneficial for both players and regulatory authorities alike by promoting safety and security in the digital world.

About Signzy

Signzy is a market-leading platform redefining the speed, accuracy, and experience of how financial institutions are onboarding customers and businesses – using the digital medium. The company’s award-winning no-code GO platform delivers seamless, end-to-end, and multi-channel onboarding journeys while offering customizable workflows. In addition, it gives these players access to an aggregated marketplace of 240+ bespoke APIs that can be easily added to any workflow with simple widgets.

Signzy is enabling ten million+ end customer and business onboarding every month at a success rate of 99% while reducing the speed to market from 6 months to 3-4 weeks. It works with over 240+ FIs globally, including the 4 largest banks in India, a Top 3 acquiring Bank in the US, and has a robust global partnership with Mastercard and Microsoft. The company’s product team is based out of Bengaluru and has a strong presence in Mumbai, New York, and Dubai.

Visit www.signzy.com for more information about us.
You can reach out to our team at reachout@signzy.com

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