Celton Manx Faces £3.9M Fine for AML Breaches in Isle of Man
The Isle of Man Gambling Supervision Commission (GSC) has imposed a £3.9 million penalty on Celton Manx, an online gambling product provider, for violating anti-money laundering and counter-terrorist financing regulations.
LISTEN TO THIS ARTICLE:Celton Manx had been licensed in the region since August 2008. However, in May this year, the company surrendered its approval, following an anti-money laundering and counter-terrorist financing (AML/CTF) inspection by the Isle of Man GSC.
The regulator uncovered several AML/CFT breaches by Celton Manx, including systematic problems that indicated its failure to comply with the Code. The provider was found to have failed in two key areas: ensuring network partners implemented equivalent measures to the Code and verifying adequate customer monitoring processes within its network services model.
The commission also criticized Celton Manx for its inability to provide evidence of assessing its own AML/CTF risk estimations, and its failure to conduct enhanced due diligence on high-risk play.
The regulator also noted poor record-keeping, inadequate tech risk assessments, and insufficient compliance monitoring. Furthermore, on several occasions, Celton Manx was also late in providing required materials to the Financial Intelligence Unit.
The ax also fell on Celton Manx's Money Laundering Reporting Officer and AML/CTF Compliance Officer, who were found lacking in sufficient expertise to carry out their responsibilities effectively. The company’s training programs for staff were also non-compliant with legal standards, further breaching the code.
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Penalty Reflects Failings Nature
Responding to the commission’s findings, Celton Manx said its internal investigations didn’t find evidence of actual money laundering or customer harm. However, due to the severity of the failings, the GSC deemed that a penalty was necessary.
A statement from the commission read, “The Code sets out the preventative measures necessary to ensure, to the greatest degree possible, that a gambling operator’s products, systems and services are not exploited for criminal purposes,” the commission said. “Any form of material non-compliance with the Code heightens the risk of money laundering, terrorist financing or proliferation financing occurring.”
The fine was initially set at £5.6 million, but was reduced to £3.9 million due to Celton Manx’s admission of its failures and willingness to cooperate with the regulator.
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