The Isle of Man has warned against the threat of Southeast Asian crime groups as it strengthened its defences against infiltration from the region.
Increased vigilance is needed when conducting business linked to the region due to its “complex and sophisticated criminal landscape”, according to a release from the Island’s Cabinet Office.
The Isle of Man, due to its established financial sector and links to the UK, is often the destination of choice for operators seeking regulatory approval. However, there have been media reports claiming that the crown dependency has been subject to attacks by criminals to bypass its controls against financial crime and immigration.
As such, the Island’s authorities are seeking to improve its defences from threats through “significant and wide-reaching actions”, including investment in law enforcement and investigation capability and strengthening the Island’s immigration system and processes.
Jane Poole-Wilson MHK, Deputy Chief Minister and AML/CFT Lead for the Isle of Man Government, commented: “The Isle of Man Government and the Island’s authorities take the illicit actions by transnational organised criminals to exploit the Island’s business environment and immigration security extremely seriously.
“These actions aim to ensure that any vulnerabilities are identified and that urgent action is taken to mitigate vulnerabilities, thereby strengthening the Island’s countering financial crime regime for the future. We will not tolerate the use of the Island for criminal activity and will not hesitate to act to disrupt and prosecute those responsible.”
The statement on the matter reiterated the Isle of Man’s commitment to international anti-money laundering and countering terrorist and proliferation financing (AML/CFT/CPF) efforts through its Financial Crime Strategy 2024-2026, a 50-page document outlining the all-Island approach to financial crime.
Additionally, the Isle of Man Gambling Supervision Commission (GSC) is also reviewing its framework and practices in market licensing, supervision and enforcement. New license applications for the jurisdiction will also be subject to additional scrutiny.
Specifically focusing on the threat from East and Southeast Asia, the GSC is set to publish more information concerning the “national risk appetite for new gaming licences with links to [the region]”.
Gaming regulations in Southeast Asia have continued to tighten in recent years as more governments seek to target offshore operators and establish regulated gaming markets.
In Thailand, a bill to establish retail casinos as part of wider entertainment venues in seven locations is well underway, while the prospect of establishing iGaming in the country has also been hinted at by former Prime Minister, and father of the current Prime Minister, Thaksin Shinawatra.
Elsewhere, in November, the Philippines tightened its regulatory framework, including imposing a ban on Philippine Offshore Gaming Operator (POGO) licences in the country.
This move displaced a plethora of operators, and reports suggested the Isle of Man was “examining the impact of embracing these displaced operators”.
A spokesperson for Digital IoM stated at the time: “The blanket ban imposed by the Philippine regulator creates a significant displacement of the sector, meaning legitimate and high-performing businesses operating there are required to seek alternative regulatory markets.
“Consequently, the Isle of Man, known for its robust regulatory standards in this space, could provide this alternative for those businesses which would meet these high standards.”
As government restrictions continue to tighten in Southeast Asia, non-compliant operators will seek a new home, and as a result, “there has become a need for increasing vigilance when conducting business linked to this region”.
The Isle of Man has consistently defended itself against claims of financial crime related to the Island, and in its latest statement, it confirmed work is underway to produce an updated National Risk Assessment (NRA), as recommended by the Financial Action Task Force (FATF).
The Isle of Man’s compliance with the FATF’s standards is set to be evaluated by MONEYVAL in October 2026.
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