B2C Compliance Roles in the Isle of Man

In the Isle of Man, two roles stand at the forefront of financial crime prevention – the Money Laundering Reporting Officer (“MLRO”) and the AML/CFT Compliance Officer (“AMLCO”).

While MLROs and AMLCOs work closely together and may even be performed by the same individual in smaller firms, these positions serve different, yet equally vital functions.

Appointing individuals to undertake these roles is a requirement for regulated gambling businesses in the Isle of Man however, it is considered best practice for businesses of all sizes, regardless of their jurisdiction or regulation status. These role holders are responsible for considering inherent money laundering, terrorist financing and proliferation financing risks, and developing and implementing mitigation strategies that are tailored to the specific needs and risks of the business, taking into consideration the size, model and markets of the company.

In this article, Chantelle Turton, Regulatory Compliance Manager at SolutionsHub and former Gambling Supervision Commission Inspector, explores the requirements, duties and nuances of each role.

Appointment Requirement

Under the Gambling (Anti-Money Laundering and Countering the Financing of Terrorism) Code 2019 (“the AML Code”), licensed B2C gambling operators in the Isle of Man are required to appoint both an MLRO and AMLCO. This applies irrespective of the risks associated with the business and regardless of whether the business is currently trading.

The AML Code

The AML Code aligns to meet international standards in accordance with the FATF’s 40 Recommendations, which are recognised worldwide in order to protect the global financial system, and, similar to MONEYVAL's guidelines, the Code mandates a risk-based approach.

Although the AML Code suggests that both role holders must possess the necessary skills, knowledge, and experience to effectively carry out their duties, there is no specific formal qualification to be appointed as an MLRO or AMLCO in the Isle of Man.

Both the MLRO and AMLCO must;

(a)     be sufficiently senior in the organisation or have sufficient expertise and authority;

(b)     have a right of direct access to the directors of the operator; and

(c)     have sufficient time and resources to properly discharge the responsibilities of the position.

Responsibility and Focus

Although both roles contribute to the overarching goal of preventing money laundering, terrorist financing and proliferation financing, their overall functions to the business are different:

MLRO

AML/CFT Compliance Officer

The MLRO is directly responsible for managing internal and external reporting of suspicious activity. This includes receiving internal disclosures, evaluating them, and where necessary, filing Suspicious Activity Reports (SARs) to the FIU (or other relevant authorities depending on jurisdictions) as soon as practically possible when there are reasonable grounds for knowing or suspecting that the activity may be related to money laundering, terrorist financing or proliferation financing.

The AML/CFT Compliance Officer is primarily responsible for designing and overseeing the company’s AML framework and ensure compliance with the AML/CFT legislation. This includes creating risk-based policies, monitoring their application, and regularly reporting the efficiency of the AML Framework to the company’s Board of Directors.

The MLRO position carries specific legal obligations under laws such as the AML Code, the Proceeds of Crime Act 2008 and the Anti-Terrorism and Crime Act 2003. Meanwhile, the AMLCO’s role is more strategic and operational, with a focus on ensuring that policies remain effective in line with the risks and needs of the business, and that staff are well-trained and aware of their individual responsibilities.

Together, these roles require effective record keeping and documented reporting obligations in line with the Code, which aligns with the FATF’s Recommendations, particularly in relation to transparency and accountability.

Choosing the Right Structure for Your Business

Whether you decide to separate these roles or combine them into a single appointment will depend largely on the size and complexity of your company’s business model. For example, smaller operators might consolidate the positions and combine them with other compliance functions, which can be a cost-effective way to manage the requirement to appoint someone under each position. It’s worth noting however, that if the same individual is appointed for both roles you will need to demonstrate that the individual has sufficient capacity, expertise and resources available to fulfil the duties of both an MLRO and AMLCO in line with the AML Code.

Deputy MLROs

As with other jurisdictions, appointing a Deputy MLRO is not mandatory in the Isle of Man, however it is widely recommended worldwide. For larger businesses, this will enhance the strength of the company’s AML/CFT framework. By appointing an approved DMLRO the business is taking measures to ensure that there is always an experienced individual available to review and report suspicions of money laundering, terrorist financing or proliferation financing, and to assist with the MLRO’s duties both during busier periods and in the MLRO’s absence. Such an appointment demonstrates both resilience and continuity for the business.

How SolutionsHub Can Help

At SolutionsHub we specialise in guiding gaming operators through the regulatory maze with clarity and confidence. Whether you need help assessing your AML framework, recruiting the right people, or assisting with training existing team members, we are here to ensure you strive towards and remain fully compliant, whilst maintaining operational efficiency.

If you would like support, get in touch at chantelle.turton@solutionshub.im to schedule a consultation.