Why do Gambling Sites Ask for Bank Statements?

Why Do Gambling Sites Ask for Bank Statements?

Bookmakers have a very good reason for asking to check your bank statements. Bank records are used to perform proof of funds checks which gambling sites are required by the law to carry out as part of the Know Your Customer (KYC) process.

Gambling companies are required to know their customers in order to provide the best possible service and ensure betting is fair, safe and free of crime. This is actually a measure which originates from the Gambling Commission and is intended to ensure the safeguarding of their players.

The Laws Governing Gambling in the UK

In the UK, all gambling sites are licensed and regulated by the Gambling Commission and are required by law to carry out KYC procedures. Since it was set up under the new Gambling Act in 2005, the Gambling Commission has been regulating commercial gambling in the United Kingdom.

The objectives of gambling legislation are to:

1. prevent gambling from being a source of crime or disorder, being associated with crime or disorder, or being used to support crime.
2. ensure that gambling is conducted in a fair and open way.
3. protect children and other vulnerable persons from being harmed or exploited by gambling.

Any gambling sites which do not follow the laws imposed by the Gambling Commission could lose their license. For this reason, bookmakers are taking proactive steps to ensure they comply fully with these objectives. On CasinoTop3 we showcase the top 10 casinos in UK and more, so you can rest assured all brands are compliant.

What is KYC Online Casino Verification

As of May 2019, all online gambling services in the UK have been required to verify their new customers before being allowed to play through a process called KYC, which stands for Know Your Customer or Know Your Client.

KYC or KYC check is the mandatory process of identifying and verifying the client’s identity when opening an account and periodically over time. Essentially, gambling sites are required to make sure their clients are genuinely who they claim to be.

Identity Documents Required for KYC Verification

An online casino verification process normally involves providing an identification document, such as a passport, ID card or driving license, and proof of address, for example, by providing a copy of a utility bill under your name delivered to your address.

Why Perform KYC Checks?

KYC checks are in place mainly to ensure no underage gambling takes place, to spot money laundering and prevent anyone who could be deemed at risk from becoming addicted and overwhelmed with gambling debt, to play at online casinos. This has nothing to do with your financial situation so far; however, once your identity has been verified, you may need to also provide bank statements.

What is a Proof of Funds Gambling Check?

A proof of funds check or source of funds or source of wealth check, is when the gambling site reviews your bank statements and other financial documents to make sure you have sufficient income and financial resources to support the level of gambling going on in your account. It is intended to save players who may be particularly at risk of financial ruin.

What Triggers a Source of Wealth Check?

Different casinos will have their own methods and rules for performing proof of funds checks, and the frequency of the checks may depend on your activity and history as a player. Players who need to be checked will normally be identified by intelligent software algorithms from the database recording their gambling activity.

Concerning activity such as excessively frequent or large deposits or drastic changes in the frequency or amounts spent on gambling may draw attention and be flagged for investigation. After being identified, the records of these players are handed over to a human worker to perform the check.

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Why Are Proof of Funds Checks Performed?

During a proof of funds check, the gambling site uses a variety of techniques to assess customers’ financial profiles, which could help them spot gamblers who are betting more funds than they can afford, indicative of the beginnings of a gambling problem. It is also a method of scanning for fraudulent use of the betting wallet, for suspicious transactions which might resemble money laundering. By law, casinos must identify and take action on such activity before it goes any further.

What Do They Look for in a Proof of Funds Check?

The intention of this check is for the bookmaker to make sure that:

• the funds used in betting are your own and do not belong to a third party
• you can afford your gambling activity with that bookmaker
• you have a legitimate source of provable income, such as a job
• your betting funds are not associated with criminal activity
• there are no suspicious transactions in your gambling account which resemble money laundering activity

What Documents Do You Need to Provide?

The information requested by a bookmaker when conducting a proof of funds check mostly concerns your income and includes:

• Your occupation and salary may be proved through a recent payslip from your employer and a recent bank statement that shows your salary being received into your account.
• Proof of employment.
• Your credit activity by checking a recent credit card statement that shows your name and payments made in and out of the account.
• A recent e-wallet statement with your name, account number and transactions showing payments made into and out of your e-wallet.
• You may also be requested to send an image of a statement showing a recent deposit to your bookie account to confirm ownership of the bookmaking account.
• Dividend income.

Generally, the above documents are necessary and sufficient for proof of funds verification. However, if your funds have been obtained through alternative means, such as through winnings on a different gambling site, further proof of this may be required.

How Do I Send Proof of Income Documents?

Usually, sending a PDF or image of the required documents is sufficient. Most of the time, this can be done over email correspondence. In other cases, the gambling site may provide a secure portal through which you can upload your images. Certain bookmakers may also ask for a hard copy of your financial documents via mail.

Is a Proof of Funds Check any Cause for Concern?

No, it is not. Even if you are flagged and checked, the process should go smoothly unless you are overridden by debt or engaging in illegal money laundering activity. As long as you are gambling with a licensed and trusted casino, your financial details and funds are as secure and safe as possible.

Failure to Provide Proof of Income Documentation

If you have received a request for such documentation, failure to provide the relevant documents to the gambling site may result in your betting account with the company being restricted or closed. Any money already in your account should be returned, but you will not be allowed back on the site.

When to Not Send Your Statements to the Casino

You should always make sure to play with established and licensed casinos which are regulated by an official Gaming Authority. If for any reason you have signed up to an unlicensed or black-market casino, do NOT provide them with your bank statements. Any casinos operating outside the law should not be trusted.

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Kate WebbEditor in Chief

With over ten years of experience working with gambling and writing about casinos, Kate brings a lot of knowledge to CasinoTop3.com. Kate oversees all the content written on CasinoTop3.com to ensure it contains factual information with value to you as a player.