Isle of Man gambling regulator seeks feedback on proposals to levy penalties on essential personnel at operators

(AsiaGameHub) –   This proposed change would hold individual employees of gambling operators accountable for violations related to anti-money laundering (AML) or know-your-customer (KYC) regulations.

The Isle of Man Gambling Supervision Commission (GSC) in the UK has initiated a consultation period for the proposed Gambling Legislation (Amendment) Bill 2025. These reforms aim to increase the responsibility placed on individuals within gambling operations, potentially leading to direct personal fines for managers and key personnel who fail to adhere to anti-money laundering (AML) or know-your-customer (KYC) requirements.

The initiative seeks to expand the scope of civil penalties to encompass employees, not just licensed operators. Sanctions could be applied in cases where breaches occur due to “consent, connivance, or simple negligence.”

This new framework will subject gaming operators’ directors, compliance officers, and senior executives to greater scrutiny, as their day-to-day decisions significantly influence anti-money laundering and counter-terrorist financing measures.

The regulator is soliciting feedback from the industry before finalizing these amendments. Submissions will be accepted until May 25, and an online question-and-answer session is scheduled to provide stakeholders with an opportunity to voice concerns and discuss the implications of personal liability.

These developments follow a £200,000 fine imposed by the GSC on Shelgeyr Limited, the owner of Maverick Games, in February. The fine was a result of identified significant deficiencies in customer due diligence, enhanced due diligence, and account monitoring. Officials indicated that these shortcomings pointed to systemic issues rather than isolated errors, underscoring the necessity for more robust compliance mechanisms.

Concurrently, the GSC has intensified its assessment of money laundering risks within the Isle of Man’s gambling sector. Its most recent National Risk Assessment highlights persistent concerns regarding Southeast Asian criminal networks, in addition to other global challenges.

The regulator has determined that the Isle of Man’s gambling industry as a whole now presents a “medium high” risk for money laundering, an increase from “medium” five years ago. Online gambling has been categorized similarly. This report comes after the GSC’s assessment last year, which classified gambling as a medium-low risk for terrorist financing in its inaugural standalone Terrorist Financing National Risk Assessment (TFNRA).