The Isle of Man Gambling Supervision Commission has imposed a £140,000 fine on digital hosting provider Cyberhorizon for failures related to anti-money laundering and counter-terrorism financing.
During an inspection, the GSC identified apparent contraventions from a sample of files. This triggered a more in-depth examination, which the company’s directors fully support.
Investigation finds multiple breaches of regulations
An investigation conducted by the GSC found that Cyberhorizon had breached several requirements under the Gambling (Anti-Money Laundering and Counter-Terrorism Financing) Code 2019.
The company failed to regularly review its customer risk assessment, implement a technology risk assessment before launching, and terminate relationships with customers who did not provide comprehensive due diligence. Additionally, it did not specify how records could be retrieved after the cessation of its licence.
Despite the initial penalty being set at £200,000, it was reduced by 30% to £140,000 due to Cyberhorizon’s co-operation with the investigation and willingness to resolve matters expeditiously.
The company held a licence in the Isle of Man from March 2021 to September 2023 before leaving the jurisdiction.
Background on Cyberhorizon
Cyberhorizon provided video platforms and had been granted a permit by the GSC for two-and-a-half years before its licence was revoked.
In recent times, several other entities, such as Evolution and St8.io, have managed to secure their regional operational permits, highlighting the feasibility of compliance with regulatory requirements.
This penalty highlights the importance of maintaining stringent anti-money laundering protocols within the gaming industry.
Despite the issuance of Cyberhorizon’s gambling licence, questions remain about the decision, particularly given that its core services were not primarily focused on video gaming platforms.
The revocation of this authorisation now serves as a reminder to other companies in the region to fully comply with all regulatory requirements.