The leading anti-money laundering (AML) regulator in the US, the Financial Crimes Enforcement Network (FinCEN), has relaxed previous restrictions to allow casinos and card clubs to employ non-documentary means to verify the identity of customers. The original rules required casinos to inspect identity documents (like driving licenses and passports) to establish a customer’s identity before opening an account. But FinCEN has now invoked its ‘exceptive relief’ authority to relax these requirements and allow casinos and card clubs to use methods such as knowledge proof systems and database verifications to ensure the customer is who he or she says they are. This is important for the continued growth of online gaming and mobile sports betting. FinCEN now allows gaming institutions to use either the examination of a document such as a valid driving license or passport, or ‘Non-Documentary Means’ such as knowledge-based authentication, database verification, customer interviews or review of financial documents. A combination of both may also be used. Individual State laws are unaffected by this FinCEN decision and may also have specific requirements.
