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The Isle of Man Gambling Supervision Commission has fined Shelgeyr Limited £200,000 after a regulatory investigation uncovered serious breaches of anti‑money laundering and counter‑terrorist financing rules.
The Commission said the penalty was deserved given the scale of the failures, though it noted Shelgeyr admitted the issues and cooperated fully during the process.
The sanction was issued under the Gambling (AML/CFT) Act 2018, with the regulator stressing its commitment to protecting customers, reducing financial crime, and maintaining confidence in the Isle of Man’s gambling industry.
Multiple failures uncovered during inspection
The investigation followed an AML inspection that revealed multiple breaches of the 2019 Code. Among the findings, Shelgeyr allowed accounts to remain active without proper enhanced due diligence, failed to verify sources of wealth, and did not carry out checks on politically exposed persons.
The company also struggled to show evidence of ongoing monitoring, did not retain proper documentation of customer transactions, and permitted anonymous accounts to operate. Training gaps were identified too, with staff not receiving updated AML instruction for more than a year.
The regulator concluded that Shelgeyr’s compliance officers and money laundering reporting officers lacked sufficient expertise and authority to carry out their roles effectively.
“[Shelgeyr] could not evidence that key staff had undertaken sufficient AML/CFT training, and up to date training containing details of new developments had not been refreshed for all staff in over 12 months, in contravention of paragraphs 27 of the Code,” the Commission stated.
Risk assessments were incomplete, with little consideration given to the dangers of accepting crypto-asset payments or the jurisdictions from which business was taken. The regulator also found that Shelgeyr’s business risk assessment failed to reflect the nature of its operations or the way services were delivered to customers.
Shelgeyr surrendered license in 2024
In its statement, the Commission stressed that the fine reflects the seriousness of the breaches and the need for strong governance.
“The Commission expects the Board of Directors to have appropriate oversight of an Operator’s activities, staff, systems, procedures and controls, in particular when any aspects are outsourced. As noted within the Commission’s Enforcement Strategy, ‘… a licence issued by the GSC imposes upon that licence holder a requirement and expectation that it seeks to achieve the highest standards of regulatory compliance, governance and risk management’, the regulator stated.
Shelgeyr, which held an Isle of Man license from 2018 until surrendering it in 2024, was found to have fallen short of those standards. This penalty, while reduced due to cooperation, serves as a warning to other operators that weak AML controls and poor governance will not be tolerated.
