New Know-Your-Customer (KYC) guidelines for gaming operators have been issued by the Lithuanian authorities.
The Gambling Monitoring Service of the Ministry of Finance said the guidelines detail the considerations that should be taken into account by gambling and lottery companies when reviewing relationships and transactions to minimise the possibility of participation in money laundering and terrorist financing.
In order to verify whether a client is politically vulnerable or is resident in a country considered to be a high risk by the European Commission, operators must verify all registrations.
The guidance states: “The company should try to get as much information as possible from the client. Such information should be collected prudently and efforts should be made to verify the information provided by the client.
“All information provided by the client must be confidential and carefully protected in accordance with the law and the company’s procedures.”
The new guidelines placed special focus on the steps that operators must take if their customer is deemed an individual who is politically vulnerable or a resident of a third country at high risk. For any such individual, enhanced customer identification is required, and the operator must review all registrations to confirm whether a customer falls into that category.
It is now mandatory for operators to verify the source of assets and funds on the basis of credible independent records, documentation or information, such as public data registers, with anyone deemed to need enhanced customer identification.
When transactions or business relationships are carried out with natural persons residing in high-risk third countries listed by the European Commission, businesses must use enhanced customer recognition.