The Isle of Man Government has released its latest Gambling Sector Money Laundering Risk Assessment, identifying significant exposure to financial crime risks within the jurisdiction’s gambling industry.
Despite the risk level being up at ‘medium high,’ this is stable compared to the previous risk assessment in 2020, which published a similar ranking.
The report attributes the higher rating primarily to the international nature of online gambling, including large transaction volumes and cross-border customer bases that can be exploited by criminal networks.
Transactional organised crime, relating to Asia and the UK, has been identified as an increasing danger to the integrity of the online gaming market.
The report from local Government takes into account all potential sources of financial crime and money laundering and extends beyond the gambling industry.
With the domestic threat held to be ‘medium-low’ due to ‘drug importation, labour exploitation and low-value fraud,’ it does seem significant that the gambling market is driving the top end of risk on the island.
In a list of sectors found to have the highest amount of money-laundering risk, online gambling placed second, only behind banking.
The Isle of Man Gambling Supervision Committee (GSC) has focused on the reports call for continued vigilance.
In its announcement it points initially to the stability of the risk level, which being as high as it is, seems more cause for concern than celebration.
The GSC’s statement does also however express that operators must review their own risk frameworks to reflect the findings from the risk assessment.
The GSC has been working towards a new Gambling Supervision Commission Bill that would significantly rewrite the island’s gambling laws
