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Launch of Tougher Know-Your-Customer Rules in Lithuania

6 October 2020, 16:03
Votes: 1

The Lithuanian gambling regulator has announced stricter rules towards new clients across the whole sector. That step is aimed to decrease money laundering activity and terrorism financing, which is often met in the gaming sphere. The special attention will be to the punters from other countries, and operators now have to gather as much information about the gambler as possible.

Launch of Tougher Know-Your-Customer Rules in Lithuania

The issue of money laundering is the traditional topic for the latest gambling news, and since financial operations have become possible remotely, the problem has been rising. A new turn has come to life with the introduction of blockchain technology, which is used for cryptocurrency transactions and fully protects data about the sender and recipient. Even though people like privacy that is possible via the modern technical facilities, it also allows terrorist-focused transactions, and that is the real problem. Lithuania also has come to the position that transparency and protection measures should be implemented.

Lithuanian National Money Laundering and Terrorist Financing Risk Assessment forced the country’s gambling regulator to review their steps towards the gaming sphere issue. As a result, the Gambling Supervisory Authority of Lithuania implemented new rules related to know-your-customer (KYC) practices.

Special attention is dedicated to individuals from other countries, focusing on those from EU-confirmed high-risk states. The regulator requires gambling providers to collect as much information as possible, including real documents, actual financial bills, and even source of the money.

Another portion of innovations relates to the classification of suspicious activity. Thus, operators now have to gather information about the punter and sort it by risk group, where nature, size, avoided identification, transactions, documents' cheating, and more are the criteria. At the same time, authority insists on legal principles and confidentiality of the gambler, while data should serve as the helping aspect if something goes wrong or a controversial situation appears.

What are the recent gambling trends in Lithuania?

According to the latest reports, the country felt the hit of the coronavirus pandemic and related measures. Thus, the online gambling sector overcame land-based punting. Simultaneously, the first half of 2020 led to almost a 16% decrease in revenues, which is €43.8 million loss.

Read more: Online gambling in Europe: what are the differences across countries?

Read more: Why is blockchain betting gaining momentum?

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