Guernsey's National Risk Assessment Highlights Money Laundering Threat

Guernsey, the international finance center, recently released its second National Risk Assessment (NRA), which has sent shockwaves through the financial and gambling sectors. The NRA has identified foreign criminal proceeds as the primary money laundering threat faced by the Bailiwick of Guernsey. This revelation underscores the need for heightened vigilance in the region.

The Alderney Gambling Control Commission (AGCC), responsible for overseeing online gambling in Guernsey, played a pivotal role in shaping the NRA's assessment. Andrew Gellatly, the newly appointed executive director of AGCC, emphasized the regulator's commitment to upholding the highest standards in its supervisory role.

While the NRA did acknowledge the potential for money laundering linked to domestic criminal activities, the risk was deemed considerably lower. Domestic offenses primarily revolve around drug trafficking and fraud. Guernsey's focus remains on mitigating the greater threat posed by foreign criminal proceeds.

Guernsey's online casino sector, a crucial component of its economy, faces a medium risk of money laundering, according to the NRA. Only four sectors were considered at a higher risk than online gaming. In 2022, online gaming accounted for a staggering 88% of all suspicious activity reports related to money laundering received by Guernsey's Financial Intelligence Unit (FIU). However, it's worth noting that the total number of reports related to online gambling decreased by 28% compared to 2021.

In conclusion, the second National Risk Assessment of Guernsey serves as a stark reminder of the ongoing battle against money laundering, particularly concerning foreign criminal proceeds. The involvement of the AGCC and the focus on online gaming underscore the need for continuous vigilance and regulation in the region's financial and gambling sectors.