Isle of Man businesses should be wary of the growth of overseas organised crime, the local government has warned.
The British Crown Dependency is particularly alluring to criminal gangs from East and Southeast Asia due to the strong foundation of its financial and gaming sectors, authorities believe.
In addition, the Isle of Man’s close links to the UK – a market favoured by the many international companies currently registered on the island – [;aces an even greater target on its gaming sector’s back.
Due to the increasing activity of crime syndicates, these businesses – especially those active in the gambling industry – are now being reminded to ensure that AML and CTF procedures remain strengthened and up to standards.
Addressing shareholders, 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.
“Significant and wide-reaching actions are being taken by agencies, with investment in law enforcement and investigation capability. This includes strengthening the Island’s immigration systems and processes.”
British politicians voiced their concerns at the start of last year after a former Asian junket owner linked to a white-label company registered on the Isle of Man was mentioned in a United Nations report about crypto, casinos and criminality in Southeast Asia.
Similar foreign entities across Macau, Myanmar, Laos and the wider Southeast Asian region have been set up to launder illicit funds, which are then put back into either crypto or casinos to further expand the criminals’ influence in the West, the UN added.
As alluded to by Poole-Wilson, extra measures are being taken by the Isle of Man to strengthen its defences against international crime.
For one, the island’s Gambling Supervision Commission (GSC) is working on additional frameworks to improve cross-collaboration between authorities and strengthen local AML and CTF regulations.
This will likely lead to more scrutiny over the application process, particularly involving firms with connections to East and Southeast Asia. Additionally, the government is reviewing how legislation around AML, CTF and licensing can also be strengthened.
This new legislation will adopt a new approach towards the issuing of licences with connections to East and Southeast Asia, intended to add more scrutiny during the application process.
Poole-Wilson concluded: “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.”