Isle of Man GSC fines operator over AML compliance gaps
The Isle of Man Gambling Supervision Commission (GSC) has fined licensed operator SK IOM Limited £70,000 ($95,500) following a regulatory inspection and investigation that uncovered multiple breaches of the island’s anti-money laundering and counter-terrorist financing (AML/CFT) code. The fine was originally set at £100,000 ($136,500) but was reduced by 30 percent due to the company’s early cooperation, full acceptance of the findings, and proactive efforts to address the issues.
Inspection uncovers serious compliance failures
The GSC launched a supervisory inspection in July 2024 as part of its oversight responsibilities under the Gambling (AML/CFT) Act 2018. Based on a sample of company files, the inspection found that SK IOM did not meet important compliance rules. One of the main issues was that the company had appointed a Money Laundering Reporting Officer (MLRO) and an AML/CFT Compliance Officer who did not have enough seniority, experience, or resources to do their jobs properly.
The company also had inadequate systems for monitoring and testing AML/CFT compliance, poorly documented procedures, and failed to submit annual AML/CFT compliance reports as required by law.
The breaches were in violation of the Gambling (AML/CFT) Code 2019, which outlines mandatory obligations for all licensees under the Online Gambling Regulation Act 2001 (OGRA). SK IOM had held an OGRA licence since 13 May 2016.
Penalty reduced due to early cooperation
In response to the findings, SK IOM engaged in early settlement discussions with the GSC, fully acknowledged the contraventions, and accepted responsibility. The company submitted a detailed remediation plan, developed with assistance from an independent third-party consultant. The GSC confirmed that SK IOM completed all the required fixes on time and said it was satisfied with the company’s efforts to improve its compliance systems to the expected standard.
The GSC stated, “The level of the Civil Penalty reflects the accepted contraventions but also that SK IOM undertook comprehensive remediation and the fact that the SK IOM directors fully co-operated with the Commission and agreed settlement at an early stage.”
The Commission added, “The Commission is satisfied that imposing the Civil Penalty on SK IOM appropriately reflects the level of the identified non-compliance. Additionally, the Commission is assured that the directors of SK IOM acknowledge and accept that there were contraventions of the mandatory provisions of the Code.”
GSC issues broader industry warning
In a wider message to the industry, the GSC reminded operators that they should take a proactive approach to following the rules. It said companies must find and fix problems in their AML/CFT systems before an inspection happens. The Commission also stressed that people chosen for senior compliance roles must be properly qualified and have enough time and resources to do their job well.
“The board of an operator must ensure appointments to senior compliance roles are not only formalities, but strategically positioned to effectively manage and mitigate the risks associated with financial crime,” the GSC said.
The GSC also made it clear that it considers an operator’s prior supervisory history when determining regulatory action. “Operators must operate their compliance framework proactively and ensure that any weaknesses and vulnerabilities it may be exposed to, have been identified, analysed, understood and mitigated and not merely be reactive to such issues following inspections,” the Commission stated.
SK IOM surrenders licence
SK IOM surrendered its Isle of Man licence on 2 July 2025 and is no longer licensed on the island. A public statement issued by the GSC outlines the full details and outcomes of the investigation, as well as the rationale for the discretionary civil penalty.
The GSC noted that the publication of this statement is part of its statutory duty under the Gambling (Anti-Money Laundering and Countering the Financing of Terrorism) Act 2018 to protect customers, reduce financial crime, and maintain confidence in the Isle of Man’s gambling sector.
