In response to a recent United Nations report, Mark Rutherford, the Acting Chief Executive of the Isle of Man Gambling Supervision Commission (GSC), addressed claims that the island's regulatory approach is too lenient, potentially allowing international criminal groups to exploit the jurisdiction for online fraud.
Rutherford expressed disappointment with these criticisms and emphasized that the GSC adheres to strict international standards and is actively committed to preventing financial crime.
The UN report has raised concerns that the Isle of Man's "lenient" regulatory environment might attract entities involved in transnational criminal activities, particularly Asian groups engaged in online fraud.
However, Rutherford insists that the GSC has implemented stringent entry requirements for new licensees and maintains rigorous ongoing supervision. According to the Isle of Man Today, Rutherford explained, "The GSC's regulation complies with international standards, and we are disappointed with the UN report's mention of lax regulation on the Isle of Man."
He cited Moneyval's positive assessment of Cyprus in 2016, which praised the Cyprus regulatory authority's anti-money laundering (AML) and counter-terrorism financing (CFT) frameworks, awarding it high marks for technical compliance. Rutherford believes this assessment contradicts the UN's allegations of insufficient regulation.
Enhancing Supervision and Combating Emerging Types of Crime
Rutherford acknowledges that cybercrime strategies are evolving and highlights the importance of taking proactive measures to address new threats. Since 2016, the GSC has intensified its regulatory efforts, establishing departments specifically responsible for anti-money laundering and counter-terrorism financing, staffed with experienced personnel.
"The GSC also indicates that it will take action according to its regulatory responsibilities if non-compliant behavior is discovered, as can be seen from recent enforcement cases," Rutherford said, referring to past enforcement actions, such as the revocation of King Gaming's license earlier this year.
Rutherford confirmed that although the revocation of King Gaming's license was significant, it did not affect the volume of license applications, indicating that confidence in the GSC process remains high. "We once had about 250 licenses, one of which turned out this way. We cannot take it lightly," he told the Tynwald Review Committee, emphasizing the importance of vigilance and moderation in regulatory actions.
Continued Cooperation and Commitment to International Standards
Rutherford emphasized the GSC's involvement in both domestic and international forums to monitor emerging types of money laundering. He noted that the GSC is always committed to staying informed about global threats and adjusting its practices accordingly. Through international cooperation, the agency seeks to maintain its established reputation for regulatory integrity.
"This applies to the emergence of new types of money laundering in the gambling industry," Rutherford told local media. He stressed that criminals often develop sophisticated methods to launder money through seemingly legitimate channels, which can operate for a while before being detected. "Many jurisdictions have become targets for criminals attempting to abuse gambling licenses. This is the first time in our history that this type of crime has led to the GSC suspending and revoking a license."
