The Isle of Man is on track to meet deadlines for improvements to anti-money laundering legislation.

Last week, the House of Keys agreed to take the first two reading stages of the Gambling (Anti-Money Laundering and Countering of the Financing of Terrorism) Bill.

It aims to ensure the island meets its obligations under MONEYVAL. The Council of Europe body, set up to evaluate anti-money laundering measures and terrorism finances, said earlier this year that the Isle of Man needed to up its game.

Treasury department member Bill Shimmins said: ’This bill supports the Gambling Supervision Commission’s mandate to supervise the entire gambling sector’s anti-money laundering and countering the financing of terrorism compliance, also known as AML/CFT compliance.

’It will give the GSC the necessary powers to inspect and enforce compliance and, if necessary, to apply sanctions for non-compliance. The powers that are being sought are modelled on those that are already available to the Financial Services Authority.’

He said the legislation would ’help to strengthen the island’s defences against crime and the financing of terrorism, which in the current global climate is a clear priority for us all’.

The bill was tabled for a formal first reading, but Mr Shimmins sought successfully to move its second reading - when the principle is debated - to enable the government to stay on track and have the legislation in place before the MONEYVAL reviews Isle of Man progress next year.

’Implementing this legislation is a significant part of our response to MONEYVAL and it needs to be safely in place before we submit the review of our progress in little more than six months from now,’ he said.

’It is an agreed national priority.’

Mr Shimmins told MHKs the MONEYVAL evaluation in 2016 determined there were two deficiencies in legislation covering gambling.

’The powers to inspect were found to be insufficiently detailed and the powers to enforce and sanction were found to be too narrow,’ he added.

’Firstly, the GSC does not have explicit powers to supervise AML/CFT compliance for all types of operator within the gambling sector.

’While the GSC can inspect online gambling operators for the purposes of AML/CFT and can inspect operators of all types for compliance with consumer protection and fairness requirements, it does not have the specific powers to inspect Isle of Man bookmakers or terrestrial casinos’ compliance with AML/CFT requirements.’

In addition, the GSC did not have a ’sufficiently broad variety’ of powers to enforce compliance or sanction non-compliant operators.

The GSC’s only current enforcement power is suspension or revocation of a licence. The bill will allow other measures, such as financial penalties and making public statements of warning.

’This bill seeks to gives the GSC explicit powers to supervise licensed betting offices and local casinos,’ Mr Shimmins added.

’It also broadens the powers to inspect and enforce compliance and to sanction non-compliance for all operators in order to act as a deterrent to future non-compliance.’

He said the powers contained within the new legislation were similar to those in the UK.

Members granted the bill its second reading. It will undergo close scrutiny at the clauses stage in October, following the summer recess.