Isle of Man strengthens defences against evolving criminal threats from Southeast Asia
The Isle of Man government announced plans to improve its defences against the “increasingly complex” threat from East and Southeast Asian gambling platforms in a statement in March, which has increased the need for more vigilance when conducting business linked to this region.
It said that given the Isle of Man’s well-established financial, non-financial and online gambling sectors which are globally attractive for customers, coupled with the geographical and constitutional links to the UK, the island was attractive for exploitation by transnational organised crime groups.
The decision by the Isle of Man Gambling Supervision Commission (GSC), which supervises the e-gaming sector, to cancel the online gambling licences of King Gaming Ltd and Dalmine Ltd last July was a clear indication that the Isle of Man had been subject to attacks by criminals to bypass controls against financial crime and immigration.
Given the threat picture, the GSC is reviewing and strengthening its framework and practices in market licencing, supervision and enforcement. This complements further investment by the GSC of a dedicated and fully resourced unit with experienced staff in its anti-money laundering (AML), counter-terrorism financing (CTF) and counter proliferation financing (CPF) unit. The GSC has begun an enhanced programme of monitoring underway and continues to share information with agencies where they identify concerns.
Alongside this, new licence applications will be subject to additional scrutiny whilst the framework and practices are under review and more information concerning the national risk appetite for new gaming licences with links to South and Southeast Asia will be published soon. To assist industry to remain vigilant against these threats, the authorities will soon publish further information concerning the types of risks and typologies being used.
“Significant and wide-reaching actions are being taken by agencies, with investment in law enforcement and investigation capability. This includes strengthening the Island’s immigration systems and processes,” said Jane Poole-Wilson, Deputy Chief Minister and anti-money laundering lead for the Isle of Man government.
“These actions aim to ensure that any vulnerabilities are identified, and that urgent action is taken to mitigate vulnerabilities, thereby strengthening the Island’s countering financial crime regime for the future. We will not tolerate the use of the Island for criminal activity and will not hesitate to act to disrupt and prosecute those responsible.”
The Isle of Man government is committed to international AML/CFT/CPF efforts as evidenced by its Financial Crime Strategy 2024-2026, which outlines the all-island approach to tackling financial crime, and is continuing to enhance inter-agency working across the regulators and law enforcement to further strengthen the financial crime prevention regime. Further amendments to legislation and the national AML/CFT/CPF regime as well as the immigration regime are in development to combat and prevent organised crime of this nature.
Work is underway to produce an updated National Risk Assessment (NRA), which is a key tool in identifying, assessing and understanding the money laundering and terrorist financing risks facing the Isle of Man. To mitigate the risks identified as part of the NRA, a National Action Plan will be developed, published and actions advanced to strengthen the island’s approach to financial crime.
Carrying out an NRA was one of the 40 recommendations made by the Financial Action Task Force, the international watchdog on financial crime. The Isle of Man’s compliance with these standards is set to be evaluated by MONEYVAL in October 2026 and significant preparations are underway for the evaluation.
