The Isle of Man Gambling Supervision Commission (GSC) has imposed a GBP70,000 ($95,500) civil penalty on licensed operator SK IOM Limited following a regulatory inspection and subsequent investigation that revealed multiple breaches of the island’s anti-money laundering and counter-terrorist financing (AML/CFT) code.
The penalty, initially set at GBP100,000 ($136,500), was reduced by 30 percent to reflect SK IOM’s early cooperation, full acceptance of the findings, and proactive remediation efforts.
The GSC launched a supervisory inspection in July 2024 as part of its ongoing oversight responsibilities under the Gambling (AML/CFT) Act 2018. Based on a sample of company files, the regulator identified significant gaps in SK IOM’s compliance procedures. These included:
The appointment of a Money Laundering Reporting Officer (MLRO) and AML/CFT Compliance Officer who lacked the required seniority, expertise, and resources.
Inadequate systems for monitoring and testing AML/CFT compliance.
Poorly documented procedures and controls relating to AML/CFT frameworks.
Failure to produce annual AML/CFT compliance reports as mandated by the Code.
These breaches were found to be in contravention of the Gambling (AML/CFT) Code 2019, which sets out statutory obligations for all licensees operating under the Online Gambling Regulation Act 2001 (OGRA).
According to the GSC, SK IOM responded promptly and constructively to the findings. The company initiated settlement discussions early, accepted responsibility for the failings, and developed a comprehensive remediation plan with the help of an independent third-party consultant.
The regulator confirmed that all required remedial actions were completed within the agreed timeframes, and it is now satisfied with the steps SK IOM has taken to bring its compliance framework up to standard.
The GSC emphasized that the fine reflects the seriousness of the non-compliance but also the operator’s constructive response. The Commission noted that SK IOM’s directors fully acknowledged the issues and demonstrated a commitment to rectifying them.
In a broader warning to the sector, the GSC reiterated the need for operators to adopt a proactive approach to compliance, rather than reacting only when issues are flagged by inspections. It also stressed the importance of appointing appropriately qualified and adequately resourced individuals to key compliance roles.
“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 Commission stated.
The Isle of Man GSC website shows that SK IOM has surrendered its Isle of Man license on the 2nd of July 2025 and is therefore no longer licensed on the island.
