Isle of Man ups risk level of online gaming in new Terrorist Financing National Risk Assessment
The report says incidents remain low.
UK.- The Isle of Man Government has published its first standalone Terrorist Financing National Risk Assessment (TFNRA) in a bid to strengthen the Island’s defences against terrorist financing and reinforce its commitment to international standards.
The TFNRA builds upon the findings of the 2015 and 2020 Money Laundering and Terrorist Financing NRAs and provides a focused analysis of the TF risks relevant to the Isle of Man as an international financial centre (IFC). It’s seen as a key component of the Island’s broader strategy to meet the Financial Action Task Force (FATF) recommendations on anti-money laundering, countering the financing of terrorism, and countering the financing of proliferation (AML/CFT/CPF).
The report finds the Isle of Man to be at a medium-low level for use a conduit for terrorist financing with a “low likelihood of funds being sent from the Isle of Man to wittingly support terrorism.” However, the risk level of online gambling has been increased from “low” to “medium”. The level was also raised for banks.
The report found that before 2024, 32 per cent of assumed clients were from higher-risk countries – but that the proportion was just 3.2 per cent in Q2 of 2024. It is estimated that the online gambling sector, including non-regulated supporting businesses, accounted for 13.6 per cent of 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.”
Last week, the GSC indefinitely banned Phua Cheng Wan, the owner of Boldwood Software, from participating in any regulated gambling activities on the island. The igaming platform provider held an Isle of Man licence from November 2022 until May 2025 but voluntarily gave it up after receiving an Enforcement Report and Notice from the regulator.
The GSC had planned a meeting for early June to review the potential cancellation of Boldwood’s licence after launching a probe into whether Phua met the criteria of a “fit and proper” individual. While no charges are being brought, the regulator says it investigation found ties between Phua and “bad actors”, including criminal networks.
The regulatory decision comes as the Isle of Man’s gambling framework faces scrutiny, particularly over white-label operations. In July, the GSC imposed a £3,937,500 civil penalty on Celton Manx, the operator of the SBOTOP sportsbook for multiple anti-money laundering (AML) compliance failures.
Celton Manx had already surrendered its Isle of Man licence back in May. A few days later, it was confirmed that TGP Europe, which ran SBOTOP in Britain under a white-label agreement, had surrendered its British licence after the Gambling Commission said it would have to pay a £3.3m fine, also for AML breaches.
