Mark Rutherford, acting chief executive of the Isle of Man Gambling Supervision Commission (GSC), has rejected recent criticism from a United Nations report.
The report, released by the United Nations Office on Drugs and Crime (UNODC), highlights the rapid growth of cybercrime and illegal online gambling operations in Southeast Asia. It also describes the Isle of Man gambling regulations as vulnerable to exploitation by organised crime syndicates.
It is claimed that organised crime groups have set up Asia-focused operations in jurisdictions such as the Isle of Man, Curacao and Malta, which have become attractive to gambling companies due to what it calls “soft regulations” and the relative ease of obtaining licences.
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.
Rutherford had previously addressed the issues in evidence to the Isle of Man Parliament’s Economic Policy Review Committee in October. He cited the creation of a dedicated AML CFT unit, staffed by qualified professionals, as evidence of the Commission’s increased oversight.
Rutherford’s comments came after the April enforcement action against King Gaming, which saw the gambling operator’s licence revoked following a raid.
Rutherford said at the time that he had “not seen a wider impact” arising from the King Gaming affair. He insisted that such incidents were isolated. “We had about 250 licences in our time and one of them turned into this. There’s no room for complacency.”
He added that the GSC was actively monitoring global financial crime trends, adjusting its oversight to new money laundering tactics as they emerged.
Despite the UN report, Rutherford noted that the volume of new licence applications remained stable, confirming the Isle of Man’s continued attractiveness as a jurisdiction.
“We maintain a zero tolerance stance on financial crime,” he concluded.
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