Why do casinos sometimes ask for bank statements, and is it legit?
It is an inconvenient experience for some players to provide bank statements to their casinos. Why would a gambling business want to know about your finances? The answer lies in the legal framework regulating online casinos.
Gambling businesses handle financial transactions in millions. This is why authorities strictly regulate them on the same standards as banks and other non-banking financial institutions. Casinos might be all about profits, but that doesn’t prevent them from ensuring that all transactions are legitimate. Casinos are legally required to verify the identity of their customers through Know Your Customer(KYC) procedures.
Let’s find out why you might have to provide bank statements when you gamble next time.
Anti-Money laundering politics
Money laundering is a serious crime involving gambling establishments being used to transfer money illegally. Regulatory authorities are throttling down on virtual casinos as they are becoming popular. Online casinos are encouraged to be more severe in dealing with players to prevent fraud.
Casino players are not always asked for bank statements when they signup. Often, financial statements are requested when some unusual activity is triggered. Most UK online casinos will ask for bank statements if a player wins, deposits, or spend £2000 or more. Online casinos are aware that it is frustrating for players to verify their income when they sign up or start playing, and many switch to no card verification casinos. To avoid this from happening, casinos wait until a player wins big or make a request for a large withdrawal to verify the source of income.
What can prompt casinos to ask for a source of funds?
Certain activities can prompt online casinos to ask for your bank statement.
- Big deposit: A considerable deposit or subsequent deposits with a large amount can draw the attention of casinos. It can cause them to flag your account and ask you to complete the fund verification process. In the UK, online casinos must verify the source of funds for £2000 and above deposits. Players have to complete an extra KYC verification to make significant deposits.
- Impressive win: Many players get angry when their casinos ask for their bank statements at the time of payouts. It might not be the same with every player, but if you win a large amount, the casino will ask you to provide evidence of the funds. Interestingly, you might be playing with the casino for months or even years without verifying your source of income. And if suddenly the casino asks for it, it can feel weird. But as we mentioned, not every time players are asked for verification when withdrawing wins; there is a criterion. Usually, there is a specific amount above which all withdrawals are made after verification. This is why many online gamblers choose no card verification casinos over traditional ones.
- Suspicious activity within the account: What is classified as suspicious can vary from casino to casino, but massive deposits, spending, or withdrawals usually trigger fraudulent activity notice on your account. Casinos do not want to be the breeding grounds for money launders and criminals, so they take serious note of any fraudulent activities.
Anytime an activity is flagged as suspicious or fraudulent, the account holder will be required to produce a proof of source of income proof.
Source of income verification helps casinos prevent money laundering and other fraudulent activities. If you make a large deposit or try to withdraw a considerable amount, you need to provide bank statements to ensure the transaction’s legitimacy. If it’s too much a hassle for you, try no card verification casinos that allow significant deposits and withdraws without ID.