Isle of Man gambling regulator refutes UN criticism

Mark Rutherford, acting chief officer of the Isle of Man’s Gambling Supervision Commission (GSC), has strongly refuted recent criticisms from a United Nations report.

The report, issued by the United Nations Office on Drugs and Crime (UNODC), highlighted the rapid growth of cybercrime and illegal online gambling operations in Southeast Asia, describing the Isle of Man’s gambling regulations as susceptible to exploitation by organised crime syndicates.

It claimed that organised crime gangs have set up Asian-facing operations in jurisdictions such as the Isle of Man, Curaçao, and Malta, which have become attractive to online gaming firms because of what it calls “relaxed regulations” and the relative ease of obtaining licences.

In line with international standards

Rutherford expressed disappointment over the report’s claims, as reported by Isle of Man Today.

“The GSC conducts its regulation in line with international standards and was disappointed to read in the UN report an allusion to lax regulatory controls in the Isle of Man.

“The GSC’s mutual evaluation by Moneyval in 2016 gave the GSC a very high technical mark for its AML CFT framework and we do not agree with the UNODC report’s conclusion that we have inadequate controls.

“The GSC has entry controls in place for businesses seeking licences and an ongoing supervision regime,” he added.

Earlier in October, Rutherford addressed similar concerns in his testimony before the Economic Policy Review Committee of the Isle of Man parliament. 

He cited the creation of a dedicated AML CFT division, resourced with skilled professionals, as evidence of the Commission’s strengthened oversight.

King Gaming case

Rutherford’s statements came in the wake of April’s enforcement action against King Gaming, which saw the gambling operator’s licence revoked following a raid.

When he appeared in front of the committee in parliament,, Rutherford claimed he had “not seen a wider impact” stemming from the King Gaming case. 

He maintained that such incidents are isolated. “We’ve had about 250 licences in our time, and we’ve had one of them turn into this. That’s not to be complacent.”

He added that the GSC actively monitors global trends in financial crime, adjusting its oversight to account for new money-laundering tactics as they emerge.

Despite the UN’s report, Rutherford noted that the volume of new licence applications remains steady, affirming the Isle of Man’s ongoing appeal as a jurisdiction. 

“We have a zero-tolerance attitude towards financial crime,” he concluded.

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