Aldernery’s Money Laundering and Terrorism Financing Risk Profile Elevated by AGCC

Alderney, a jurisdiction within the Bailiwick of Guernsey, is facing increased risks of money laundering and terrorism financing, according to a report released by the Bailiwick of Guernsey. The report, the first of its kind in several years, revealed that the risk of money laundering has risen from medium lower to medium.

The Alderney Gambling Control Commission (AGCC), responsible for regulating gambling in the region, attributed the heightened risk to new threats outlined in the latest European Commission report and the changing perception of the sector. Despite being an offshore licensing jurisdiction with less than 50 issued licenses, Alderney aims to attract gambling companies seeking global appeal, similar to larger licensing jurisdictions like the Isle of Man and Curaçao.

While some anticipate that ongoing reforms in Curaçao may redirect operators to Alderney, the increased risks of money laundering and terrorism financing, as well as the prohibition of crypto gambling in Alderney, may also influence companies’ decisions.

Despite these challenges, Andrew Gellatly, the executive director of the AGCC, remains optimistic about positioning Alderney as a significant gambling hub. He acknowledged the increased money laundering risk and highlighted the commission’s efforts to address the concerns raised by the European Commission, particularly regarding issues such as smurfing, identity theft, and prepaid cards.

Gellatly emphasized that the AGCC has raised the money laundering risk rating of the region to demonstrate its vigilance, despite improvements in payment verification methods and a reduction in fraud. Additionally, the Bailiwick of Guernsey increased the risk level of terrorist financing in iGaming from much lower to lower.

Overall, the report signals the need for heightened vigilance and measures to mitigate the risks posed by money laundering and terrorism financing in Alderney’s gambling sector. Despite these challenges, Alderney remains committed to establishing itself as a prominent player in the global gambling industry.