Isle of Man Publishes National Risk Appetite Statement

The Isle of Man has published the National Risk Appetite Statement (NRAS), a new publication that puts the island’s commitment to preventing online gambling-related crime in the spotlight.

The Isle of Man Recognizes Certain Risks

As a major licensing hub known for its lower taxes, the Isle of Man has seen unprecedented growth in gaming that has created hundreds of jobs and contributed to the economy. However, the growing number of licensees has also led to certain risks.

In the NRAS, the Isle of Man government highlighted its continued investment in reinforcing its iGaming framework against money laundering, terrorism financing, and other financial crimes. The initiative also underscored the island’s responsiveness to tackling emerging threats and adhering to international standards.

The NRAS furthermore promotes “proportionate enhanced measures” to tackle risk in higher-risk areas.

The NRAS also addressed the 40 recommendations by the Financial Action Task Force (FATF), saying that the Isle of Man is committed to implementing them.

Limited Appetite for Higher-Risk Businesses

The NRAS sets out the island’s appetite for risks related to iGaming. Among other things, it echoed recent concerns, saying that there is “limited appetite” for businesses “where there is ownership and/or control from East or Southeast Asia.”

The NRAS emphasized that “where there is an accumulation of higher risk factors there is an extremely limited appetite within the regulators to grant a license.”

As part of a robust national response, the Island is setting a more restrictive risk appetite, when certain risk factors are present, in respect of licenses across all sectors in order to continue to protect against abuse by criminals.

NRAS excerpt

While the Isle of Man does not prohibit licensees from engaging in higher-risk activities or jurisdictions, it emphasizes that they must first ensure robust risk management in accordance with their AML/CFT Codes.

A Crucial Step in Protecting the Island

Jane Poole-Wilson, the Isle of Man’s Minster for Justice and Home Affairs, commented on the matter, recognizing the threats the island faces. Poole-Wilson added that the NRAS is a “crucial step” in protecting the island from fraud and exploitation.

The Isle of Man is open for good quality, reputable business. To support those aims, this Statement will provide to industry and wider stakeholders the clarity they need.

Jane Poole-Wilson

The NRAS clarified that a second and more comprehensive statement will be published later his year.

In the meantime, the island is currently undertaking its third iteration of its National Risk Assessment, meaning that more data will be available soon. The publication is set to provide licensees and other industry stakeholders with “a solid understanding of identified risks, vulnerabilities and mitigations across ML/TF/PF related topics and across all sectors.”