Alderney, a jurisdiction of the Bailiwick of Guernsey, is now facing increased risks of money laundering and terrorism financing. The Bailiwick of Guernsey, responsible for assessing risk across the British Crown dependency, has raised the risk of money laundering from medium lower to medium.
The latest report, the first in several years, was released by the Alderney Gambling Control Commission (AGCC), which regulates gambling in the region. The AGCC justified its assessment by referencing the new dangers outlined in the latest European Commission report and the overall shifting perception of the sector.
Alderney is an offshore licensing jurisdiction catering to gambling companies with global reach, but currently has fewer than 50 issued licenses. While some speculate that ongoing reforms in Curaçao may redirect operators to Alderney, the increased risks of money laundering and terrorism financing, as well as Alderney’s prohibition of crypto gambling, could be factors for companies to consider.
Despite these challenges, Andrew Gellatly, the executive director of the AGCC, remains optimistic about establishing Alderney as a major gambling hub.
Gellatly acknowledged the increased money laundering risk, attributing it to the European Commission’s concerns about vulnerabilities in the online gambling sector. He also mentioned challenges such as smurfing, identity theft, and pre-paid cards, but emphasized that licensees have effective measures in place to detect and prevent these issues, leading to prosecutions.
Gellatly stated that despite improvements in payment verification methods and a reduction in fraud, the AGCC has raised the money laundering risk rating to highlight their vigilance. Additionally, the Bailiwick of Guernsey has increased the risk level of terrorist financing in iGaming from much lower to lower.
Overall, Alderney is facing a heightened risk environment for money laundering and terrorism financing, which may impact its attractiveness to gambling operators. However, the AGCC is committed to addressing these challenges and maintaining vigilance in regulating the region’s gambling industry.