Cyberhorizon fined by Isle of Man regulator over AML breaches

An investigation found breaches of the Gambling Code 2019.

UK.- The Isle of Man Gambling Supervision Commission (GSC) has issued a fine of £140,000 against the digital hosting provider Cyberhorizon. The regulator said it uncovered multiple breaches of Gambling (Anti-Money Laundering and Countering the Financing of Terrorism) Code 2019 after launching an investigation in June last year.

Cyberhorizon, which provides video platforms, no longer has a licence in the jurisdiction but held one between March 5 2021 and September 25 2023. It’s unclear why it had a gambling licence, but the regulator found that it failed to review its customer risk assessment.

The GSC said it failed to completely implement a technology risk assessment before it launched and did not end relationships with customers when they did not provide enhanced due diligence. It also failed to outline how records could be retrieved following the cessation of its licence.

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The regulator initially set a penalty of £200,000 but reduced it to £140,000 because CyberHorizon cooperated with its investigation.

It said: “The Commission is satisfied that the imposition of the civil penalty on CyberHorizon reflects the serious nature of the non-compliance and issues identified. We are also satisfied that the directors of CyberHorizon, at this time, recognise and accept that there had been certain shortcomings in that mandatory aspects of the code had not been complied with.

“All firms undertaking business in the regulated gambling sector have an obligation to conduct their affairs in a manner that adequately identifies and mitigates,” the GSC said. “This includes, among other things, the money laundering and terrorist financing risks faced by it.”