New risk assessment highlights vulnerabilities despite rare local cases
First Standalone Terrorist Financing Report Released
The Isle of Man Government has published its first standalone Terrorist Financing National Risk Assessment (TFNRA), marking a significant step in the island’s ongoing fight against organised crime and illicit financial flows. The assessment builds upon earlier reviews of money laundering risks conducted in 2015 and 2020, both of which identified vulnerabilities stemming from the island’s role as an international financial centre.
The new TFNRA concludes that while the Isle of Man has a medium-low overall risk of being used as a conduit for terrorist financing, certain sectors warrant closer scrutiny—particularly online gambling.
Online Gambling Risk Re-Evaluated
In 2020, the risk associated with online gambling was rated as low. However, the 2025 assessment upgrades it to medium, placing it alongside the banking sector. This revision follows a series of recent money laundering investigations linked to online gambling firms, raising concerns over entry controls and B2B oversight.
The report highlights that although cases of terrorist financing via online gambling on the Isle of Man are rare, the global prevalence of such incidents is moderate, warranting increased vigilance.
Adding to the concerns, the Gambling Supervision Commission (GSC) recently fined Celton Manx £3.9m ($5.2m) and revoked its licence due to serious anti-money laundering (AML) failures, illustrating vulnerabilities within the sector.
Economic Importance Heightens Stakes
Online gambling is not only a regulatory challenge but also an economic pillar, contributing 13.6% of the island’s national income, including unregulated supporting businesses. This economic reliance increases the urgency to balance risk mitigation with industry stability.
Prior to 2024, around 32% of online gambling clients originated from high-risk jurisdictions, a figure that has now dropped to 3.2% due to tightened controls. Nonetheless, weaknesses in B2B regulations persist, prompting the GSC to strengthen its risk-based licensing framework.
Government Response and Future Measures
Justice and Home Affairs Minister Jane Poole-Wilson underscored the importance of the TFNRA, stating it “reflects the depth of collaboration across government, regulators, and industry” and identifies areas where capacity and awareness must be enhanced.
The Isle of Man remains committed to aligning with international obligations while safeguarding its financial reputation. Ongoing reforms, stricter entry checks, and multi-agency cooperation are expected to further mitigate risks associated with terrorist financing.
Outlook
With the island ranked 55th among 119 global financial centres, the upgraded risk classification serves as both a warning and a roadmap for regulators. The Isle of Man aims to strengthen compliance and maintain its status as a secure, responsible jurisdiction amid growing scrutiny on the global stage.
