KYC for Online Gaming Platforms

Why Mandatory KYC for Online Gaming Platforms?

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

IVF, Surrogacy & KYC – Importance of Verification in Fertility-care

According to Ernst and Young, India’s fertility market and IVF procedures saw a 20% increase during the last five years. But what is such news doing on a fintech page? Shouldn’t this be on a health blog?

Well, as technology spreads across all platforms, it also enhances healthcare. This time, it’s in ways where we not only preserve but create life. But it has many bureaucratic hurdles. Currently, the government has made verification of participants mandatory for any such medical procedures.

Where verification is necessary, Digitization becomes inevitable.

IVF And Surrogacy In India

Compared to the approximately 2.5 million cycles per annum globally, only 0.2 to 0.25 million IVF cycles are performed annually in India. But the future looks vibrant for the sector as the Indian fertility Industry was valued at more than $746 million in 2021. It is projected to reach $1,453 million by 2027 with 5-6 lakhs IVF cycles. In short, the IVF market is growing fast.

On the other hand, estimates show that more than 25,000 children are now being born through surrogates in India annually in an industry worth $2 billion. Hence both alternatives are in high demand in the country.

Why Do IVF And Surrogacy Need Digitization?

Aadhaar card and other identification documents are mandatory to avail of any service at ART/IVF centers. In addition, donors must also be registered with the Pre-Natal Diagnostic Techniques Act (PCPNDT) Cell. Such requirements enhance genuineness in parents who approach clinics for IVF and surrogacy.

But the primary issue with such measures is the hurdles it creates for potential parents. If anything, such procedures make the entire process onerous.

Digitization and technological resources can resolve this with simple and seamless digital tools. Moreover, it can make the process faster and easily accessible. Hence, the adoption of newer methods enhances medical procedures.

How To Digitize IVF And Surrogacy

If any person is looking for IVF, surrogacy, or any other form to have a child and wants to undergo the process, they need to share the Aadhar and PAN, and hospitals must verify the document.

In such scenarios, we can use the Application Programming Interface(API)I resource to process the soft copies of the required documents. APIs can collect and verify if couples seeking IVF are genuine and donors and surrogates and not volatile. With consent, it can also confirm if the parties involved have had any previous medical conditions that must be disclosed.

Additionally, it can be used not solely for Aadhaar verification but also for PAN and other document verifications to create a better picture of the involved parties for the associated hospital or clinic.

Where To Find Help To Digitize

If you are seeking IVF/surrogacy services, opt for the ones offering digitized interaction, as this usually helps maintain a safer approach. In addition, it ensures fortified data and reduces fraudulent practices.

Unfortunately, clinics and hospitals adapting to the technological demand are less in number or too slow at it. If you represent an enterprise that offers such services, you certainly will benefit from our products. At Signzy, we make sure that we provide the apt resources for digitizing your processes. We can make all your verifications seamless and automated.

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.

KYC Processes

How Specializing Verification Improves KYC Processes

Customer onboarding has historically included identity verification. The necessity for ID card verification still exists, but our society has gone digital, changing how we execute identity verification and why we need it. This is where KYC, KYB, And KYCC come into play.

In the past, unless there was a prior relationship, corporate entity verification was handled internally through extensive physical background checks. This made the client onboarding process vulnerable to fraud and bias. The transition to digital did little to change the way things are now. Customer onboarding continued to receive a lot of attention, but Business to Business (B2B) lagged.

Regulations and stringent rules for due diligence have increased protection for all parties while making it more straightforward for banks, financial institutions, and companies to onboard consumers.

Data about customers and businesses continued to be in danger, and fraud increased. As it was up to the enterprises to follow and put these rules into practice, many continued to disregard developing efficient ID validation systems, leaving holes in the onboarding and compliance process.

 

What Makes KYC Verification Insufficient For B2B Processes?

 Know Your Customer (KYC) regulations are centered on specific consumers, as the name suggests. Businesses and other financial institutions were left to decide how to handle their business clients in light of this. Unfortunately, that resulted in lapsed ID verification far too frequently and essentially nonexistent B2B customer onboarding.

Customers and companies alike paid the price for the absence of security standards in the form of an increase in money laundering, fraud, identity theft, malware and virus attacks, hacked accounts, stolen data, and, ultimately, money. As a result, global ID verification and document verification services were considered unneeded unless the customer was considered high-risk, and basic due diligence was the rule.

For complete customer due diligence, there were four crucial elements for KYC verification.

  • Validating identification and documents
  • Identification and confirmation of beneficial owners
  • To create a risk profile, one must comprehend the nature and purpose of customer connections.
  • for reporting questionable transactions and managing digital identities, ongoing behavior monitoring, and transaction screening

These ignored organizational structure, who the significant decision-makers were, and whether or not they differed from the constantly-changing signatories. Additionally, it didn’t consider who had access to the records, international payments, their current clients, workers, or suppliers.

The phrase “Know Your Client” was intended to be more broadly used to refer to corporate organizations than the acronym “KYC.” Sadly, many missed the memo, and firms were left to handle B2B customer authentication until authorities stepped in.

 

What Does KYB Get Right That KYC Doesn’t?

 According to the United Nations (UN), 2% to 5% of the global GDP is laundered annually, and an estimated 90% of money laundering activities go undetected. Therefore, it is evident that KYC verification alone cannot stop this from happening.

The losers in the fight against money laundering and other financial crimes are financial institutions. To offer businesses the same anti-money laundering (AML) regulations and address combating the financing of terrorism (CFT) laws, the Financial Crimes Enforcement Network (FinCen) addressed the oversight of KYC. As a result, it implemented Know Your Business (KYB) in 2016.

With the implementation of KYB, the US Customer Due Diligence Requirements for Financial Institutions (CDD), or the EU’s Fifth Anti Money Laundering Directive (5AMLD), the penalties for non-compliance were raised.

Therefore, it was made sure that everyone made an effort to plan and carry out a KYB verification process. KYB aims to identify Ultimate Beneficial Owners (UBO), reduce the risk of money laundering and other fraudulent acts, monitor and screen businesses against blacklists and greylists, and identify UBO.

 

The Requirements For KYB

Aside from the basic customer due diligence that is part of the requirements for KYB, businesses are required to provide the following:

  • Company name
  • Operational status
  • Incorporation date
  • Company address
  • Business registration number
  • Key management personnel

Institutional and corporate rules and requirements could differ. Some people might need further details for the KYB and KYC verification processes. Names and addresses of board members and other essential decision-makers may also be included in the list of Personally Identifiable Information (PII).

Some companies may require that you comply with AML/CTF regulations before doing business with them. Know Your Customer’s Customer (KYCC) rules may apply depending on the type of your organization.

 

KYCC- Its Relevance For Companies

Banks and other financial institutions understood the rationale for KYCC after the Wirecard crisis in Germany in 2020, but the implementation was different. Trying KYCC without the full compliance of all entities was a headache because certain business entities, including payment providers, had several firms that, in turn, did business and had multiple consumers. It may seem unjust to categorize all Fintech or consultancy firms as high risk at the outset, but that occurs when banks need to determine who your company serves.

Regulators and implementers were able to control KYCC better, prevent the development of other fictitious firms, and lessen the possibility of incorrectly designating enterprises as “high risk” by supporting KYCC with AML policies and automation.

 

The Bottomline

While constant monitoring is necessary for KYC Verification, it is only essential for high-risk businesses for KYB. The continuous problem of finding UBOs might make the corporate onboarding process take two to three months. Financial institutions and business clients experience frustration and hopelessness due to these circumstances.

But effective KYB can solve this issue. That’s why you need a reliable service provider for your processes. You can check out www.signzy.com for more details on the services we offer.

 

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:

Signzy

Written by an insightful Signzian intent on learning and sharing knowledge.

 

Automated KYB- Relevance & Normalization

The anti-money laundering software market is projected to reach $1.77 billion by 2023. This means that banks and financial institutions are improving their processes like KYC, KYB, and AML. But we need a closer look at why this is happening, its relevance, and how we can normalize active automation.

Banks and other financial institutions have long been the central focus of all commercial activity. They must carry out due diligence at each stage of the client journey, which is a huge duty. A compromise in that financial system might have financial and security repercussions worldwide in today’s digital age.

Ironically, the least concerning possible problems are fraud and money laundering. As a result, banks may unknowingly assist in funding international terrorism, illegal drug use, and human trafficking. Banks can help KYCC by using increased due diligence techniques in the KYB and KYC verification process to reduce the possibility of onboarding non-compliant organizations.

 

KYB- A Deeper Look And Better Solution

The financial sector is aware of the conflict it is facing. Banks and other financial institutions realized the value of KYB and AML/KYC compliance after being the target of ongoing cyberattacks, scandals, embezzlement, and fraud schemes. Many Small and Medium-Sized Businesses (SMBs) don’t, though. Even some huge organizations disregard AML/KYC compliance due to the expense of onboarding new customers.

Banks are ultimately at risk due to assumptions made by other industries. For example, one company made a hiring decision based only on intuition, believing the position to be entry-level and exempt from intrusive background investigations. HR promoted this employee to a crucial decision-making position a few years later, assuming the background check was completed earlier.

 

Why KYB Should Be Genuine And Effective

Everyone inside and outside the financial industry must contribute to AML/KYC compliance to protect the sector. Companies should not just seek digital KYC verification to avoid fines for non-compliance. Instead, all businesses, from SMEs to major multinationals, should feel compelled by moral and ethical principles to investing in rigorous KYB and KYC verification services.

The secret to stopping fraud and boosting global security is making sure the people you bring on board are reliable. That is why it is crucial for financial institutions to implement an efficient KYB and KYC verification process.

Before beginning a commercial connection, B2B customers and their clients must undergo worldwide ID verification and behavior monitoring as part of the KYB verification process to assess their risk and sustainability.

Businesses and banks make sure that transactions are consistent with their risk profile by doing regular behavior monitoring. In addition, employee records and other important information are maintained secure and current with the help of effective digital identity management.

Knowing a company’s high-risk clients and business partners helps to protect your company’s reputation from being accused of criminal carelessness for facilitating the movement of illegal monies.

 

How to Make Automated KYB and KYC Verification the Norm in Your Business? 

To achieve AML/KYC compliance, developing your KYB and KYC verification procedure is an excellent place to start. Transparency in financial activities can be ensured by adhering to local, regional, and international AML/CFT laws and regulations, including those of the European Union (EU), the United Kingdom (UK), the United States, and others. Concerning ongoing client screening and risk assessment, having quick access to the pertinent worldwide watch lists, spam lists, and sanction lists are helpful.

As previously mentioned, verification for commercial entities can be time-consuming, and even ID card verification is more complex with the proper global ID verification system.

Databases

Your digital KYC verification system must have access to the appropriate databases to swiftly validate IDs and documents, checking watchlists, and evaluate the risk to guarantee that you comply with AML/KYC regulations. Most identity verification service providers can validate customers’ IDs; they do not offer tools for behavior monitoring or document verification services.

Digital Identity Management And Relevant Laws

Data collecting and digital identity management are disadvantages of the DIY method for building your own digital KYC verification system. Businesses occasionally need to remember that there are rules for data handling in addition to using client information to inform customers of impending changes and events. In addition, consumers can maintain control over their data thanks to the Global Data Protection Regulation (GDPR) and the California Consumer Privacy Act (CCPA).

Act on Protection of Personal Information (APPI), which will have the same extensive effects for third-party data suppliers outside of Japan as the GDPR, has now been implemented as Japan’s equivalent of the GDPR. In cross-border ID verification, these data requirements and digital identity management should be included in the cost of customer onboarding. In addition, providers of identity verification services must also accommodate mobile ID verification.

Identity Verification With KYC And KYC

Combining their current customer onboarding procedure with mobile ID verification is the one grey area where banks and other financial institutions struggle. However, artificial intelligence-powered automated customer onboarding systems may be of assistance.

Providing an automated KYC verification method that detects fraudulent information faster than humans could help close the gap between banks and businesses. In addition, KYB and KYCC should be carried out in unison and with perfect online ID verification as part of B2B customer onboarding.

 

Bottomline

KYB adoption is no longer the issue. Enterprises are looking forward to automation and its normalization for improved identity verification. You can avail of effective solutions for automation at www.signzy.com.

 

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:

Signzy

Written by an insightful Signzian intent on learning and sharing knowledge.

Employment Verification- Why It’s Primal For Lending?

The 2021 Federal Trade Commission (FTC) report states that almost 30% of all financial fraud complaints in the US involved identity theft. This represents a 50% increase from 2020. Among these, loan application fraud was one of the primary sources of complaints, and the identity of the fraudulent buyers and borrowers were usually fake or stolen.

Conventionally, the loaning process for housing has been tedious for both the lender and the applicant. Now add a bit of high fraudulence risk into the mix, and voila, you have the recipe for a potential disaster, a disaster that needs to be avoided. That’s why when the loan application process begins, there is hectic paperwork and back and forth with your lender. The whole deal of underwriting is an intense procedure and includes methods for everyone involved.

One major step in the underwriting process is efficient employment verification. The lender needs to do their due diligence and validate that you are and have been employed to ensure they’re considering all of the user’s income sources. This confirms that the potential borrower can cover their down payment, closing costs, and monthly repayment.

Why is employment verification necessary in lending?

While it seems like just another box to check in the lending process, lenders must verify your employment and all income information to confirm your capability to make your monthly mortgage payment and reduce their risk of giving you the money.

How do mortgage lenders verify their borrowers?

Mortgage lenders verify employment by contacting the concerned borrower’s employer directly. First, they review the borrower’s recent income documentation. These can include an employment verification letter and a recent pay stub. Sometimes it can also have something else that proves an employment history and verifies the income.

Employee verification can take days to weeks if your lender works off of physical forms. However, the process could take mere hours if you work with a lender who requests payroll access for any underwriting.

Are you looking to save time in your mortgage processes? Then, check out Signzy’s resources to innovate and improve them.

When is the employment verification process done for mortgages?

Some lenders verify employment multiple times during the mortgage process:

  • 1)Pre-approval

Working with a lender before you have your dream house picked out in a competitive housing market and learning what kind of mortgage you would qualify for can be a good idea. When you get the preapproval, you may be required to submit information or documents such as bank statements and salary slips to prove your income, the funds you’re using to get the loan, and a credit check.

  • 2)Verifications during the underwriting

Each lender will verify income and employment checks underwriting a mortgage according to their timeline. Generally, it is done anywhere from a few days to a few weeks before your loan is cleared to close. It might be performed again if the timeline to complete was extended to confirm that nothing has altered. 

Experts recommend not making career changes during the underwriting process, finishing another loan payment to avoid impacting your credit score, or getting a new credit card.

To Conclude

Income and employment verifications are a critical part of the home loan process. Still, it can be difficult for those without access to an HR resource to handle the particular paperwork; even when an HR department exists to submit the documentation to lenders, paper forms and conventional PDFs slow down the whole lending process. That’s why the lender’s responsibility is to make the process more convenient and easy.

If you want to make the verification processes easy, then you should avail the services of a good fintech provider. In a world with so many choices, finding the right one is difficult, especially with so many bad options. At Signzy, we ensure that the fintech solution we get you is not manufactured from a blueprint but rather created according to your needs. Our AI-driven API resources help us to customize our way through your problems.

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:

Signzy

Written by an insightful Signzian intent on learning and sharing knowledge.

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