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The Isle of Man’s gambling regulator has updated its enforcement strategy with a slew of public documents outlining investigative processes, enforcement powers, penalties, remediation criteria and criminal referral options.
The Isle of Man Gambling Supervision Commission (GSC) on Monday (July 1) uploaded nine guidance documents to a new enforcement page on its website, greatly expanding the transparency of its operations and the granularity of its requirements of licensees.
GSC chief executive Steve Brennan told Vixio GamblingCompliance that the present swathe of updates derives from a 2022 review that sought to elevate regulatory standards.
“The GSC constantly reviews its enforcement regime to ensure it remains effective,” Brennan said.
“The last review, in October 2022, identified some shortcomings against international standards. It was clear our processes needed to be more defined with clearer guidance so all stakeholders could understand what is expected.
“The recent enforcement guidance is an outcome of the review,” he said.
All dated June 2024, the documents are led by an enforcement strategy summary, including objectives, legislative instruments, investigative powers and philosophy, punishment or remediation options, and intelligence-gathering and intelligence-sharing powers for land-based and online gambling segments and cannabis regulation.
Another document delves into the criteria and a five-stage flowchart for case referrals to the regulator’s enforcement division and the Serious Case Review Panel and its draft and final enforcement reports.
The guidance outlines circumstances where the GSC will consider a settlement with non-compliant operators, particularly if there is “early acknowledgement by a [licensee] of contraventions or breaches of regulatory requirements”; imposition of a maximum civil penalty of £1m ($1.3m) or an amount twice the size of the benefit gained by contravention (in sync with a European Union money laundering directive); and police referrals in the event of suspected criminal acts.
Other documents detail criteria for banning individuals from licensed gambling operations for definite or indefinite periods, and public release of this information; publication of enforcement outcomes; and the appointment at the licensee’s cost of a consultant tasked with remedying compliance deficiencies relating to anti-money laundering and counter-terrorism financing (AML/CTF).
The release of the enforcement strategy follows a GSC industry outreach session in mid-June led by Brennan, AML/CTF enforcement director Nic Libreri and senior enforcement inspector Nigel Boyde.
That session included an “enforcement overview” presentation that pre-empted Monday’s release, reminding participants that no new legislative powers had been introduced, that “remediation remains key” and that the enforcement strategy would “provide greater clarity and transparency around the exercise of our powers”.
Meanwhile, the Isle of Man Constabulary is continuing to investigate two linked online gaming licensees, King Gaming and Dalmine, after arresting associated individuals in April.
Three more arrests followed on May 16, with each suspect released on bail.
“This activity forms part of a wider fraud and money laundering investigation being led by the … Constabulary’s Proactive International Money Laundering Investigation Team who continue to conduct inquiries in close liaison with partners within the Island’s AML/CFT regulatory and intelligence network to fully investigate these matters,” the Isle of Man Constabulary said in a statement to Vixio on June 20.
Isle of Man media reported that ethnic Chinese employees were among those detained, but when asked by Vixio about the names and nationalities of the suspects, the police and the GSC declined to comment, citing ongoing investigations.
The updates to the Isle of Man’s gambling enforcement ecosystem coincide with the island’s work to update its national risk assessment for publication next year, ahead of a likely assessment in late 2025 or 2026 by the EU’s MONEYVAL committee, which assesses compliance with AML/CTF standards.
The assessment “is fundamental to protecting the Island from financial crime and is a crucial element of the Island’s commitment to meeting international standards”, the Financial Services Authority said in a statement on June 12.
