DAZN Bet on KYC: Focus on Risk-Based Verification

As the European Union’s Anti-Money Laundering (AML) package nears full implementation, gambling operators face new challenges. Bogdan Ursu, Head of KYC at DAZN Bet, explains that the future of identity verification is about effective application rather than merely increasing checks.

Continuous Player Monitoring

Identity verification, once seen as a one-time requirement, has evolved into a dynamic process. Ursu emphasizes distinguishing between Know Your Customer (KYC) and Customer Due Diligence (CDD). After verifying a player's identity initially, operators focus on monitoring risk factors such as changes in player information, potential sanctions, or politically exposed person (PEP) status. If concerns arise, identity can be re-verified. However, continual friction isn't the goal. The process aims to ensure confidence in player relations, taking action when necessary.

Aligning with EU AML Reforms

The EU's AML reforms aim to introduce a cohesive framework. Established iGaming operators, like DAZN Bet, already maintain controls such as identity verification, sanctions and PEP screening, fraud detection, and transaction monitoring. Ursu notes the primary shift is towards a standardized European framework that applies controls more uniformly across jurisdictions. While DAZN Bet utilises automation to streamline operations, adapting existing processes to fit local requirements will be crucial.

The Role of Automation in Verification

Automation has become integral to KYC and AML processes. At DAZN Bet, automation coordinates various checks, determining when a player needs further assessment. Human oversight remains vital in ambiguous cases involving potential sanctions matches, fraud suspicions, or complex risks. Automation reduces manual work and enhances focus on intricate cases, allowing scalability without proportional increases in workforce.

Balancing Security with Player Experience

There's often a tension between stringent KYC measures and seamless player experience. Ursu argues that the issue lies in poor verification flows. By deploying a risk-based approach, genuine players can proceed swiftly, with additional checks reserved for higher-risk scenarios. The goal isn't to decrease checks, but to target the right ones at the appropriate times. This reflects the need for efficient verification systems that boost conversion without compromising security.

Developing a Flexible Framework

DAZN Bet approaches regulatory compliance by maintaining a robust common framework while incorporating specific local requirements. The EU AML framework provides a unified baseline, yet local variations persist. Ursu stresses the importance of core capabilities like identity verification, fraud controls, risk assessment, and audit trails. Local policies adapt these capabilities to meet regulatory demands, offering consistency paired with the necessary flexibility.

Future Onboarding Trends

Looking ahead, Ursu envisions a future where onboarding processes are digital and streamlined. With the anticipated EU Digital Identity Wallet, identity verification could rely more on digital credentials, reducing the need for repeated document submissions. Despite these advancements, CDD and AML remain essential for ongoing relationship management. The focus will be on integrating identity, fraud monitoring, player data, and transaction analytics to tailor interventions based on genuine risk.

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