Isle of Man GSC Fines Shelgeyr £200K Over AML Failures

The Isle of Man Gambling Supervision Commission has imposed a £200,000 penalty on Shelgeyr Limited following a regulatory probe that identified major shortcomings in the company’s anti-money laundering and counter-terrorist financing controls.

According to the regulator, the size of the fine reflects the seriousness and breadth of the compliance failures. The Commission added that the operator acknowledged the deficiencies and worked with investigators, which was taken into account when determining the final sanction.

The action was taken under the Gambling (AML/CFT) Act 2018, with the authority reiterating that enforcement is aimed at safeguarding customers, limiting financial crime risks and preserving trust in the jurisdiction’s gambling framework.

Inspection revealed widespread compliance gaps

The case stemmed from an AML inspection that found repeated breaches of the 2019 regulatory Code. Investigators reported that some customer accounts continued operating without required enhanced due diligence, while checks on source of wealth were missing or incomplete. Controls related to politically exposed persons were also not properly applied.

Supervisors found limited proof of ongoing customer monitoring and inadequate record-keeping around transactions. In addition, certain accounts were allowed to function without proper identification measures. Staff training was also outdated, with AML instruction not refreshed for over a year.

The Commission further determined that key compliance and reporting officers did not have the necessary experience or operational authority to properly perform their duties.

It noted that the company was unable to demonstrate that core personnel had completed sufficient AML/CFT training and that updated instruction covering new risks and developments had not been rolled out to all employees within the required timeframe.

Weak risk assessment and crypto oversight

Regulators also flagged weaknesses in the company’s risk assessments. Reviews did not properly address exposure linked to crypto-asset payments or the geographic sources of its customers. The overall business risk profile was described as not accurately reflecting how the operation functioned or delivered its services.

Licence already surrendered

The Commission emphasized that the enforcement outcome highlights expectations around governance and board oversight, including responsibility for outsourced functions, internal controls and risk management standards.

Shelgeyr held an Isle of Man gambling licence from 2018 until it surrendered the permit in 2024. While cooperation reduced the financial penalty, the regulator said the case should serve as a clear warning that inadequate AML controls and governance failures will lead to enforcement action.