Isle of Man upgrades online gambling terrorism financing risk to ‘medium’ level
The report acknowledges that, while it is unlikely that people on the island are knowingly financing terrorist groups, there is always an inherent threat through institutions such as banking and online gambling.
Key points:
– The terrorist financing risk for the sector has been upgraded to ‘medium’
– This is despite occurrences in the Isle of Man being classed as rare
– Online gambling accounts for 13.6% of the national income for the island
The Isle of Man Government has released its first standalone Terrorist Financing National Risk Assessment (TFNRA) as part of its initiative to tackle organised crime on the island.
The report expands on the previous investigations into money laundering published in 2015 and 2020, both of which noted the island’s vulnerability as an international financial centre.
The report concluded that the Isle of Man sits at a medium-low level for being used as a conduit for terrorist financing.
While there is a “low likelihood of funds being sent from the Isle of Man to wittingly support terrorism… There is always a risk.”
Online gambling was initially rated as ‘low’ in 2020, but this recent report has upgraded it to ‘medium’ alongside banks.
This was balanced between the existence of cases globally being ‘moderate’ while the existence of cases in the Isle of Man being ‘rare’.
The report also explained that, prior to 2024, around 32% of assumed clients were from higher-risk countries – which has since fallen to 3.2%.
It is estimated that the online gambling sector, including the non-regulated supporting businesses, accounts for 13.6% of the national income.
The report stated: “Recent money laundering (ML) investigations involving online gambling companies have prompted a reassessment of the adequacy and effectiveness of the Isle of Man Gambling Supervision Commission’s (GSC) previous entry controls in this area, resulting in a lower entry controls score.
“The GSC has identified a number of actions and measures to mitigate those risks. Efforts are in progress to establish a clear legal foundation for risk-based licensing decisions which are stricter than the standard entry control checks previously applied.
“The experience derived from these ongoing ML investigations in this area has been further considered as part of a multi-agency threat assessment… There have also been weaknesses identified in the B2B controls.”
Only a few weeks ago, the GSC fined Celton Manx £3.9m ($5.2m) and stripped the company of its licence following AML failures.
Good to know: The Isle of Man is ranked 55th out of 119 international financial centres, with New York in first place, London in second and Hong Kong in third
Jane Poole-Wilson, Justice and Home Affairs Minister, said: “This assessment is a vital tool in our ongoing efforts to protect the Isle of Man’s financial system and uphold our international obligations.
“It reflects the depth of collaboration across government, regulators, and industry, and highlights both our strengths and the areas where we must continue to build capacity and awareness.
“We are committed to ensuring that the Island remains a secure and responsible jurisdiction.”
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