Isle of Man Issues $870K Penalty to Betsson Subsidiary

BMO Manx has been targeted in a comprehensive move by the Isle of Man’s Gambling Supervision Commission, which is the gambling regulator in the jurisdiction. The gambling regulator has fined the company $870,000 or £700,000.

BMO Manx Hit with Penalty in Isle of Man

According to the watchdog, BMO Manx has had shortcomings in its policies and procedures regarding anti-money laundering and counter-terrorism financing compliance which has necessitated the stiff fine applied to the entity.

Lack of Enhanced Due Diligence for high-risk customers was a particularly glaring issue, the regulator argued, that has not been addressed fully by the company. The problem was further compounded by the fact that the operator is accused of not terminating relationships with high-risk customers when the process of improved due diligence was not carried out.

Another issue was found with the suspicious activity reporting framework, which was inconsistent or lacking, as well as a flawed process for analyzing Politically Exposed Persons, the commission further argued. Business Risk Assessment procedures were also delayed by six months following the business’ official launch.

According to the commission, the entity has failed to muster sufficient resources and effort to ensure that it meets a good compliance standard. BMO is said to have failed to provide sufficient documentation to the relevant regulators on top of the previously outlined shortcomings.

BMO Takes Steps to Amend Shortcomings

However, the gambling entity has acquiesced to the commission’s findings and has taken measures to ameliorate its circumstances and improve its reporting as well as other compliance prerequisites.

Although the business no longer holds a license in the jurisdiction, the company has undertaken sufficient reforms to ensure that it better meets regulatory standards.

The fine, set at $870,000, or £700,000 was reduced from a previously awarded penalty which pinned it at $1.25 million or £1 million