FAQs

How do I know if I am a designated business?

If you are undertaking any activity in or from the Island which is included in Schedule 1 to the Act this is registerable activity. It is essential you do not commence, or advertise as commencing activities until you are registered as this is an offence under the act, which is subject to criminal or civil sanction. Consider whether it is appropriate to obtain independent legal advice.

We would recommend getting in touch with the team at dnfbp@iomfsa.im at an early stage to discuss the application process. Also please refer to the “How to register” page.

If I am not undertaking Designated Business, but I think I might do one day in the future, should I still register?

This will depend on your plans, If you have a date in mind of when you would like to expand your business then you should apply to register, we can work with you registration to take effect from the date you plan to commence designated business if it is imminent.

If your plan is at an early stage feel free to contact the Authority to make us aware of your intentions, but you should only apply for registration when your plans are more established. The Authority only has the power to register those actually undertaking designated business and this must be from a set date.

I undertake designated business from time to time but not as a mainstay of my business. Do I still have to register?

Yes, if you are undertaking any activity included in Schedule 1 to the Act this is registerable activity regardless of extent and frequency of undertaking this business. It is essential you do not commence, or advertise as commencing activities until you are registered as this is an offence under section 7 of the Act which is subject to a criminal or civil sanction. If this has occurred please get in touch with the team at dnfbp@iomfsa.im to discuss the next steps. Further information can be found on the “Overview” page.

I have inadvertently undertaken designated business without being registered, what should I do now?

It is essential you do not commence, or advertise as commencing activities until you are registered as this is an offence under section 7 of the Act which is subject to a criminal or civil sanction. If this has occurred please get in touch with the team dnfbp@iomfsa.im to discuss the next steps. Further information can be found on the “Overview” page.

I am advertising as a designated business but I haven’t yet carried out any business. Do I register now, or wait until I have taken business on?

If you are advertising as a designated business, this would be considered “holding out” under section 7 of the Act which is subject to a criminal or civil sanction. Therefore you would be required to apply for registration as soon as possible and cease any and all advertising until a registration has been issued by the Authority.

I am currently registered with, or have a practicing certificate from more than one professional body. Which body will be responsible for my oversight?

During the application process the business will be asked to choose which body they would like to oversee their compliance with the AML/CFT framework. Where there are multiple professional bodies available in respect of the activity being provided, the business may choose which one best suits their own needs.

Registration and Enforcement functions are not able to be delegated under the Act and are retained by the Authority.

What happens if I am not a member of a professional body, or a member of a body which has not elected to oversee their members on the Island under the Act?

Where a business is not a member of a body to whom the Authority has delegated its oversight powers, the Authority will undertake AML/CFT oversight as the default boy.

I am a member of a professional body the Authority has delegated its oversight powers to. May I still elect to be overseen by the Authority?

Yes, a business which is a member of a professional body may choose to be overseen by the Authority.

If I am registering a convertible virtual currency (“CVC”) business do I have to have an Isle of Man presence to apply to be a designated business?

Yes, the Designated Businesses Registration Policy mandates that due to the nature of CVC business, and in order to ensure oversight can effectively take place, with effect from 5 October 2018, the Authority will not register a CVC business unless the following two conditions of registration are met:

a) the CVC business must have (and continue to have) at least 2 IoM resident directors; and

b) management and control of the CVC business must be in the Island.

Because of the limitation of the Authority’s ability to oversee CVC businesses which lack substance or real presence on the Island, such a characteristic is considered to pose an unacceptably high risk of money laundering and terrorist financing.

I would like to obtain more information regarding registering to undertake an initial coin offering.

Please ensure you are familiar with the requirements of the Designated Businesses Registration Policy. We would also recommend reviewing the sector guidance in respect of convertible virtual currency businesses. Further, we have some specific additional information on initial coin offerings available here and some FAQs available

I am a consumer and would like further information regarding initial coin offerings.

Further information can be found here.