A gaming company holding an online license in Sweden was instructed by the regulatory body to beef up its Know-Your-Customer (KYC) procedures to ensure effective customer identification.
Proof of Address Issues
Bayton Limited, a Malta-based gaming operator, running Jackpot City Casino, Ruby Fortune and Spin Casino brands, was found by Spelinspektionen, the gaming regulator in Sweden, deficient with regards to its procedures to ensure its customers reside in the country.
Spelinspektionen launched an investigation into Bayton’s KYC processes in April last year to make sure the operator was compliant with new gaming regulations introduced in the country in January 2019.
The regulator now outlined that the current procedure did not allow a proper assessment as to whether a customer resides or has resided for at least 6 months in the country since it is based on a single invoice or bank statement as proof of address.
At the moment, Bayton is using SPAR, a register of all people living in Sweden, and BankID to check whether a customer is a Swedish resident. According to the regulator, the issue arises when a client registers without BankID, as such customers are allowed to use a temporary account for up to 30 days, without providing additional proof of identification such as a driving license, passport, or a household bill with the address on it.
After the 30-day period expires, Bayton will close the customer’s account if a player failed to verify completely, but such a scheme leaves the door open for players who reside outside of Sweden to register and play with one of the brands Bayton operates.
In this regard, Spelinspektionen considered the company’s KYC processes insufficient to comply with existing regulation and posing significant risk that people outside of the remit of the Gaming Act in terms of residence may register and gamble.
The regulator further raised concerns with regards to the operator’s practice to accept household bills and bank account statements as proof of address and instead, suggested Bayton started asking customers to provide an identity card issued by the Swedish Tax Authority.
KYC Review Needed
As part of its findings, Spelinspektionen ordered the Malta-based gaming operator to undertake a review of its KYC procedures and implement changes where required no later than June 1, 2021, when the company is expected to report back to the regulator.
The recent developments with Bayton confirmed once again the regulator’s commitment to ensure gaming operators are compliant with the new gaming regulation in the country.
In December last year, Spelinspektionen ordered another gaming company, Skill On Net, to improve its KYC processes and make sure non-residents of the country could not register and play.