FinCEN Issues Guidance on Identity Verification Requirements for Casino Customers
Yesterday, the Financial Crimes Enforcement Network (FinCen) issued an opinion (here) granting iGaming and mobile betting operators “Exceptive Relief” from the requirement to use documentary measures to verify identity and that suitable non-documentary measures to verify identity (of the sort the industry currently uses) are acceptable.
FinCEN issuing this guidance resolves an issue that has been hanging over the iGaming and mobile sports betting industries for a couple of years. Under a provision of the USA Patriot Act, casinos are supposed to use documentary evidence (driver’s license, passports etc. to verify customer’s identity in establishing accounts.
In 2019, individuals at FinCEN expressed the opinion that the same standard should apply to iGaming and mobile sports betting, in effect requiring in-person registration. The industry pushed back on this, and the regulators, particularly DGE, engaged with FinCEN on it. We hadn’t heard much on this issue in quite a while, but this appears to be a positive development for the industry.