Changes to Anti Money Laundering and Countering the Financing of Terrorism Handbook

 

Date Change
April 2017

April 2017: Appendix D(a) and D(b) have been updated to take account of the FATF's latest Statements published on 24 February 2017

November 2016

Appendix D(a) and D(b) have been updated to take account of the FATF's latest Statements published on 21 October 2016.

August 2016

Section 7.6.3 "Making an external disclosure" has been updated to reflect recent changes to the Isle of Man Financial Intelligence Unit and the creation of an online reporting system.

Any references in the AML/CFT Handbook to the Financial Crime Unit have been changed to the Financial Intelligence Unit ("FIU").

July 2016 Appendix D(a) and D(b) have been updated to take account of the FATF's latest Statements published on 24 June 2016.
April 2016

There have been some minor terminology amendments made throughout the document to ensure accuracy and consistency. Also, any remaining references to 'Commission' have been replaced with 'Authority'. There have also been a small number of other changes made to the document. A document setting out other changes can be found here.

Also, Appendices D(a) and D(b) have been updated to take account of the FATF's latest Statements published on 19 February 2016.

December 2015

Appendix D(a) and D(b) have been updated to take account of the FATF's latest Statements published on 23 October 2015.

AML/CFT handbook and associated sector specific guidance also updated to reflect the creation of the Financial Services Authority.

A document setting out other changes can be found here

August 2015 Substantial changes have been made to the handbook and a document explaining where there have been material changes can be found here.
April 2015 The AML/CFT Handbook has been completely re-written following amendments to the Island's legislation. This document has also been updated to improve its layout, language and order so that it can easily be read alongside the revised Code. Finally, Appendix D(a) and D(b) have been updated to take account of the FATF's latest Statements published on 27 February 2015.
November 2014 Appendix G(a) and G(b) have been updated to take account of the FATF's latest Statements published on 24 October 2014.
September 2014

Appendix G(b) have been updated to take account of the change MONEYVAL has made to the Warning Notice for Bosnia and Herzegovina, now dated 19 September 2014.

The wording in the paragraph has changed slightly so it now reads: "continues to call on states and territories" and the link to the Full Warning Notice has been changed.

July 2014 Appendix G(a) and G(b) have been updated to take account of the FATF's latest Statements published on 27 June 2014.
June 2014 Appendix G(b) has been amended to reflect the MONEYVAL public warning issued on 1 June 2014, regarding Bosnia and Herzegovina.
April 2014

Section 3.6 This section of the AML/CFT Handbook has been amended to bring the wording in line with the definition of a politically exposed person included in the Money Laundering and Terrorist Financing Code 2013.

Section 4.4.2 There has been a minor amendment to this section to make it clear that in the case of both a bank statement and a mortgage statement these documents should be recent and no more than 6 months old. Also, in relation to the acceptance of a bank / mortgage statement as proof of address a statement has been inserted into the AML/CFT Handbook to advise that this document must not be an electronic statement. This is already stated in respect of utility bills.

Section 4.7.3 Section 4.7.3 has been amended to provide some additional guidance in relation to which individuals' identity the licenceholder should be verifying where there are numerous individuals involved with the business. Where the business is assessed as standard risk the licenceholder has to verify at least 2 directors / signatories. When considering which of these individuals' identity to verify the Commission would expect that any individual who is dealt with on a frequent basis, and also any individual that is assessed as high risk are selected and their information verified.

Sections 9.5.4.2, 9.6.4.2 and 9.7.4.2 These sections of the AML/CFT Handbook have been amended to state that a copy of the documentation used to verify the customers' identity must be taken by the licenceholder. The Commission has discussed this with licenceholders in this business sector who have advised they are already doing this in practice.

Appendices

Appendix G has been updated to take account of the FATF's latest statements of 14 February 2014.

December 2013

Section 2.1 Lettering in relation to the definition of suspicious transaction trigger event has had to be re-inserted.

Section 2.6 Lettering in relation to the definition of trusted person has had to be re-inserted.

Section 4.5 A typographical error has been amended in section 4.5.

Section 4.7.1 In November 2013 further guidance was inserted into this section regarding who should be identified in relation to a legal person where there are numerous directors / signatories / trustees / council members. Previously, when an applicant for business was been assessed as standard risk there was a concession regarding the number of signatories, and where different, directors / council members / trustees, that need to be identified and their identity verified.

In November this was amended to advise that the Commission expects that the names and addresses of all directors / signatories / trustees / council members should be known to enable the remaining directors / signatories / trustees / council members to be screened to allow the licenceholder to identify any individuals that may influence the applicant's risk rating. However, the concession may still be used in relation to the verification of identify.

At this current update it was felt some further clarity should be inserted regarding identifying signatories.

Also, the details of the concession in relation to verification of identity has been moved to section 4.7.3 of the AML/CFT Handbook.

Due to this restructure subsequent reference changes have been made in 4.2.1, 4.6.2 and Appendix E of the AML/CFT Handbook. Appendices Appendix A(a) and A(b) - the numbering has had to be re-inserted into these Appendices.

Appendices

Appendix A(a) and A(b) - the numbering has had to be re-inserted into these Appendices.

November 2013

Section 2.4.1 Wording amended to clarify that it is not solely technological risks that may trigger a re-assessment of business risk.

Section 2.8 Formatting changes only, a bullet point has been inserted however the wording remains the same.

Section 4.4.4 A further alternative method of verifying address for overseas residents has been included whereby a letter of introduction may be received by a trusted person. Please see the Handbook for full details.

Section 4.5 The wording and formatting in this section relating to non-face to face relationships has been slightly amended, however this has not altered the meaning. Where a customer relationship is established remotely copies of documents that have been certified by a suitable certifier should be obtained. Where these cannot be obtained identity and address can be verified using electronic data sources in certain circumstances. One of the anti-fraud checks in this section must also be undertaken.

The formatting has also been amended as the points (a) to (g) (previously in 4.5) should have been in two separate lists as they are referring to different things.

The anti-fraud checks that licenceholders may use have also been crossed referenced to section 4.4.2.1 of the Handbook (independent electronic data sources).

Section 4.7.1 Further guidance has been inserted regarding where there are numerous directors / signatories / trustees / council members. Where an applicant for business has been assessed as standard risk there is a concession regarding the number of signatories, and where different, directors / council members / trustees, that need to be identified and their identity verified. However, in order to determine the risk grading of the applicant for business, and to comply with the Code, the names and addresses of all directors / signatories / trustees / council members should be known to enable the remaining directors / signatories / trustees / council members to be screened to allow the licenceholder to identify any individuals that may influence the applicant's risk rating.

Section 4.10.1 Amendment of a typographical error.

Section 4.10.2 Further detail has been inserted to state that the licenceholder must conduct its own risk assessment of any applicant for business, including those introduced to it, as per the requirements of the Code. The numbering in this section has subsequently been amended.

Section 4.13 Further detail has been inserted in relation to a TCSP licenceholder utilising the Code concession regarding timing of verification of identity.

Section 5.1.1 This section has been slightly re-worded to ensure the Commission's expectations in relation to ongoing monitoring are clear, lower risk customers' CDD information should be reviewed "at least" every three years.

Section 6.3.1 Further guidance has been inserted regarding a suspicious transaction trigger event and the action to be taken in different scenarios. The numbering in the rest of this section has been amended.

Section 9.1.1 This section has been amended to reflect the change in 2.4.1

Section 9.2.4 This section has been amended to reflect the change in 5.1.1.

Appendices

Appendix E has been amended to correct two typographical errors in the definition of Paragraphs 10(6) and 10(8) Isle of Man's Money Laundering and Terrorist Financing Code 2013.

Appendix G has been updated to take account of the FATF's latest statements published on 18 October 2013.

July 2013

Amendments have been made throughout the AML/CFT Handbook to take account of the Money Laundering and Terrorist Financing (Amendment) Code 2013. The update has also updated some sections and addressed some typographical errors.

Section 2.6 The definition of "trusted person" has been amended to reflect changes to the definition introduced by the amendment Code.

Section 4.4.2 The use of an Armed Forces ID card as a method of verifying identity has been removed from the AML/CFT Handbook. The reason for this being the Home Office has published guidance stating this document cannot be photocopied.

Section 4.10 .1 This section has been amended to take into account the changes to the definition of "trusted person" introduced by the amendment Code.

Section 4.10.4 Additional guidance has been provided in relation to the use of the eligible introducer concession where the applicant for business is assessed as high risk. It has been determined that, subject to certain safeguards being in place (and a terms of business/eligible introducer certificate being in place), it would be acceptable for a licenceholder to receive copies of certified customer identity documents held by eligible introducers as part of the EDD that is to be undertaken.

Section 5.1.1 This section has been slightly re-worded to ensure the Commission's expectations in relation to ongoing monitoring are clear.

Sections 6.2 and 6.6.1 Certain updates have been made within these sections to bring the information more up-to-date, also to provide some further information regarding the "failure to disclose" offences in the Proceeds of Crime Act.

Section 9.2.4 Further guidance has been provided to banks regarding taking a risk based approach to monitoring of client bases.

Sections 9.4 -9.7 Following the first round of AML/CFT visits to class 8 licenceholders some specific AML / CFT guidance has been developed for this sector.

Appendix A (a) now contains the amended Money Laundering and Terrorist Financing Code 2013.

Appendix E has been amended to correct some small typographical errors in relation to the name of the Code.

Appendix G has been updated to take account of the FATF's latest statement, also in the main body of the appendix, a reference which referred to the previous Code has been updated to reflect the current position.

Appendix L has been amended to correct some small typographical errors which referred to the incorrect paragraph of the Code.

May 2013

Amendments have been made throughout the AML/CFT Handbook to take account of the new paragraph numbering in the new Money Laundering and Terrorist Financing Code 2013.

Amendments have been made throughout the Handbook to remove any references to the Prevention of Terrorist Financing Code 2011.

Amendments have also been made throughout the Handbook to take account of new terminology within the revised Code such as the use of the definitions; "suspicious transaction trigger event", "trusted person" and "internal and external disclosures".

Section 1 of the Handbook now makes reference to the Isle of Man Government's commitment to combating money laundering, terrorist financing and proliferation.

Section 2.1 now replicates from the Code the list of procedures a licenceholder should have in place. It also makes reference to the new provision in the Code that these procedures should be approved by the senior management of the licenceholder.

Section 3.1 has been restructured to take account of a suspicious transaction trigger event. It also advises the action that should be taken by a licenceholder if evidence of identity is not received.

Within section 3, the area on PEPs has been renumbered as 3.6.

A new section has been inserted at 3.5 to focus on the requirements of Enhanced Customer Due Diligence. It should be noted that the wording is not new, it has been extracted from an existing section (3.7-Other high risk customers) which has been separated into two sections for clarity.

Section 4.3 has been updated to differentiate between the procedures required for a one-off transaction and those required in relation to an exempted one-off transaction. It also sets out in what circumstances the concession for exempted one-off transactions cannot apply.

Section 6 reflects the new terminology of internal and external disclosures. It also states that registers of internal and external disclosures may be contained in one single document if the details of the internal and external disclosures are easily extractable.

Section 7.1 makes it clear that all directors (both executive and non-executive) are subject to AML/CFT training. It also introduces the concept of "workers" to cover those individuals who may not fall within the definition of "employee".

Section 8.7 introduces the requirement from the Code regarding when a licenceholder utilises a third party to assist with record keeping.

Appendix A(a) now contains the Money Laundering and Terrorist Financing Code 2013.

Appendix A(b) now contains the Proceeds of Crime (Business in the Regulated Sector) Order 2013 which amends Schedule 4 to the Proceeds of Crime Act.

Appendix B has been updated to reflect the most recent Financial Services Rule Book.

Appendix C has been amended to take account of the Schedule to the Money Laundering and Terrorist Financing Code 2013.

Appendix D has been updated to make it clear that a nominee company may only be accepted as an acceptable applicant where it is acting in the capacity of an applicant for business and is acting beneficially for itself not as a nominee for another person.

Appendices E, J, K and L have been amended to reflect any new terminology and paragraph references brought in by the new Code.

February 2013

Appendices G(a) and G(b) amended to reflect the FATF Statement issued on 22 February 2013 and the AML/CFT "Compliance update on-going process" updated on 22 February 2013.

November 2012

Appendices G(a) and G(b) amended to reflect the FATF Statement issued on 19 October and the AML/CFT "Compliance update on-going process" updated on 19 October 2012.

August 2012

Appendices G(a) and G(b) amended to reflect the FATF Statement issued on 22 June 2012 and the AML/CFT "Compliance update on-going process" updated on 22 June 2012.

Amendments made to Section 4.5.1 to remove requirement in certification statement for "true likeness".

Amendments also made to Section 6.1 to emphasise the requirement to make Suspicious Transaction Reports in regard to tax offences.

February 2012

Appendices G(a) and G(b) amended to reflect the FATF Statement issued on 16 February 2012 and the FATF's statement entitled "Improving Global AML/CFT Compliance: update on-going process" updated on 16 February 2012.

Amendments made throughout the AML/CFT Handbook in respect of referencing the FATF's revised Recommendations in their International Standards on Combating Money Laundering and the Financing of Terrorism & Proliferation issued on 16 February 2012. In particular sections 1.5, 3.8, 5.1, 5.2.6, 5.3.1, 5.3.4 and 5.3.5

December 2011

Section 4.10 - Concession allowing Source of Funds to be used as verification of identity removed. Section dealing with Eligibly Introduced relationships moved from section 4.11 to section 4.10.

Section 4.12 - Intermediaries concession removed and replaced with a new section 4.11 regarding a specific concession for applicants for business that are collective investment schemes and a new section 4.12 which deals specifically with Pooled Clients Accounts. Referencing changes made throughout the AML/CFT Handbook to take account of these changes

Amendments made throughout the AML/CFT Handbook to reference foundations and clarify the treatment of foundations as applicants for business for customer due diligence purposes. Sections specifically affected include 3.2.1 and 4.7.

Amendments made throughout the AML/CFT Handbook to refer to legal persons rather than companies.

Amendments made to Appendix E, the Eligible Introducer's Certificate, to take account of applicants for business that are foundations.

November 2011

Section 4.4.2 amended to clarify that utility bills received electronically, rather than by post at the relevant address, are not an acceptable method of verifying residential address.

In respect of trusts, section 4.6.2 amended to clarify that due to the potential risks of money laundering and/or terrorist financing, licenceholders should also identify and verify the identity of third parties before making any payments to them. This would include loans or payments arising as a result of powers of revocation being exercised in respect of a trust.

Sections 4.7.1 and 4.7.3 amended to make reference to "natural person" in the context of underlying principals and beneficial owners.

Sector Specific Guidance for Trust Services Providers, Corporate Service Providers, Banks and Investment Businesses included in Section 9

Appendix B amended to refer to the Proceeds of Crime (Money Laundering) Code 2010.

Appendices G(a) and G(b) amended to reflect the FATF Statement issued on 28 October 2011 and the FATF's statement entitled "Improving Global AML/CFT Compliance: update on-going process" also issued on 28 October 2011.

September 2011

Insertion of a new Appendix A(c) for the Prevention of Terrorist Financing Code 2011 ("CFT Code"). This Code, made under the Terrorist (Finance) Act 2009 largely mirrors the requirements of the Proceeds of Crime (Money Laundering) Code 2010 ("AML Code").

Handbook amended throughout to refer to the CFT Code and provide guidance on the CFT Code's requirements.

Section 4.4.2 amended to amend the definition of recent account statement / recent utility bill from being no more than 3 months old to no more than 6 months old.

A tracked changes version of the AML/CFT Handbook as at 1 September 2011, can be found here.

July 2011

Amendments include updates to Appendices G(a) and G(b) following the Financial Action Task Force's ("FATF") Public Statement and the FATF's update to the statement entitled "Improving Global AML/CFT Compliance: update on-going process" both issued on 24 June 2011.

Amendments have also been made in sections 4.13.1, 5.4.2, 6.2, 6.6.1, 6.7.2, 6.8.1 and 6.8.3 following consultation with the Financial Crime Unit.

Amendment has also been made to section 5.2.4, in respect of dealing with "Hold Mail" Relationships.

Full details of the changes made, including a tracked changes version of the AML/CFT Handbook as at 13 July 2011, can be found here.

May 2011

Insertion of a new Appendix A(b) for the Proceeds of Crime (Money Laundering) (Amendment) Code 2010. This amendment Code replaces Schedule 2 of the Proceeds of Crime (Money Laundering) Code 2010 with a new Schedule which has the effect of removing Argentina from the list of equivalent jurisdictions.

Appendix A has been relabelled Appendix A(a). No further changes have been made to Appendix A(a).

Appendix C, Consolidated List of Jurisdictions Listed at Schedule 2 of the Proceeds of Crime (Money Laundering) Code 2010 (As Amended), updated to remove Argentina from the list of equivalent jurisdictions in accordance with the amendments made to the Proceeds of Crime (Money Laundering) Code 2010 by the Proceeds of Crime (Money Laundering) (Amendment) Code 2010.

Appendix G(a) amended to remove Uzbekistan and the Northern Part of Cyprus.

Handbook amended throughout to refer to Schedule 2 of the Proceeds of Crime (Money Laundering) Code 2010 as amended.

Section 4.4.2 (g) amended to remove the reference to face-to-face business, in accordance with Section 4.4.2.1.

April 2011

Appendix G(a) amended to take account of the Financial Action Task Force's ("FATF") Public Statement issued on 25 February 2011.

Appendix G(b) amended to take account of the FATF's statement entitled "Improving Global AML/CFT Compliance: update on-going process" issued on 25 February 2011. Section

4.13 of the AML/CFT Handbook has also been amended at 4.13(a) to add in the wording "or those deputising for the nominated resident officers in accordance with Rule 8.22 of the Rule Book".

November 2010

Appendix G(a) amended to take account of the Financial Action Task Force's ("FATF") Public Statement issued on 22 October 2010.

Appendix G(b) amended to take account of the FATF's statement entitled "Improving Global AML/CFT Compliance: update on-going process" issued on 22 October 2010.

Sections 4.4.1 and 4.4.2 of the AML/CFT Handbook have also been amended to clarify that it is necessary to obtain the identification information, name, date of birth, place of birth and nationality in respect of all customers, but in respect of low risk customers, it is only necessary to verify the name and date of birth.

Section 4.4.2.1 has been amended to remove reference to face-to-face situations in respect of verifying identity using independent electronic data sources.

Section 4.6.2(g) amended to clarify that payments to beneficiaries can not be treated as exempted one-off transactions.

Section 4.10 amended to restrict the use of the "source of funds as verification of identity" concession to customers that present a low risk of money laundering or terrorist financing.

Section 4.11, 4th paragraph amended to make clear that the Eligible Introducer concession does not apply if paragraph 11(11) or paragraph 11(12) of the Proceeds of Crime (Money Laundering) Code 2010 are met.

Section 4.11.4 amended to more clearly reference the impact of paragraphs 3(4) and 11(12) of the Proceeds of Crime (Money Laundering) Code 2010 on the Eligible Introducers concession.

September 2010

The main changes to the AML/CFT Handbook are as follows:

Amendments made throughout the Handbook to take account of the new Proceeds of Crime (Money Laundering) Code 2010.

Section 2.8 on Technological Developments - additional guidance provided.

Section 4.4.1 amended to outline the identification information which must be collected for all personal customers, personal customers who are standard risk and personal customers who are higher risk.

Sections 4.7, 4.11 and Appendix E - minor typographical errors corrected.

Appendices A(a) and (b) replaced by Appendix A - Proceeds of Crime (Money Laundering) Code 2010 replaces the Criminal Justice (Money Laundering) Code 2008 and the Criminal Justice (Money Laundering) (Amendment) Code 2009.

New Appendix L - Pro-forma Register of Internal Money Laundering and Financing of Terrorism Reports made to the MLRO or Deputy MLRO.

Detail of the changes can be found in the Tracked Changes version of the AML/CFT Handbook.

July 2010

Update Appendix G(a) to refer to the FATF statement of 25 June 2010 entitled "FATF Public Statement" which updates their public statement issued on the 18 February 2010;

Update Appendix G(b) to refer to the FATF statement of 25 June 2010 entitled "Improving Global AML/CFT Compliance: On-Going Process", which updates the statement of the same name issued by the FATF on 18 February 2010.

May 2010

Amendments have been made to the AML/CFT Handbook, these are:

Appendix G(a) (formerly Appendix G) amended to remove reference to the FATF statement of 18 February 2010 entitled "Improving Global AML/CFT Compliance: On-Going Process" and countries referred to within that statement. New Appendix G(b) added entitled "Countries and territories covered by other statements from international bodies" drawing the statement issued by the FATF on 18 February 2010 entitled "Improving Global AML/CFT Compliance: On-Going Process" to the attention of licenceholders in order that it can be taken into account when conducting risk assessments and in respect of AML/CFT systems and controls. Business relationships and one-off transactions with persons or legal arrangements resident or located in jurisdictions listed in Appendix G(b) do not need to be treated automatically as higher risk.

References to Appendices G(a) and G(b) incorporated throughout the AML/CFT Handbook.

Amendment to section 4.5.1 dealing with suitable certifiers and the certification procedure to allow, on an exceptional basis where the certifier is unable to provide the full certification wording for identity documents, the flexibility to accept the wording "certified as a true copy of the original".

The amended AML/CFT Handbook can be found at http://www.gov.im/iomfsa/handbooks/guides/AML/

March 2010

Amendments have been to the AML/CFT Handbook, these are

References amended throughout the AML/CFT Handbook to updated legislation including the Proceeds of Crime Act 2008 and the Terrorism (Finance) Act 2009. This has resulted in amendments to the text as a consequence of provisions within these pieces of legislation, particularly within Sections 5.4.3 and 6 of the AML/CFT Handbook.

Amendments made throughout the AML/CFT Handbook to reflect the coming into force of the Financial Services Rule Book 2009 in place of the Financial Services Rule Book 2008. This includes changes made throughout the AML/CFT Handbook to remove references to the Criminal Justice (Money Laundering) Code 2008 covering the same issues as Part 9 of the Financial Services Rule Book 2008 as this Part has been removed from the 2009 Rule Book. Amendments also made throughout the AML/CFT Handbook to reference the AML/CFT provisions within the Financial Services Rule Book 2009 with respect to anonymous accounts (see Rule 6.6).

Section 3.2.4 text removed in respect of the timing for verifying identity as this is specifically covered in Section 4.13 of the AML/CFT Handbook.

Section 4.7.1(l) amended to clarify the available concession for Corporate Services Provider licenceholders. Section 4.7.3 amended to include reference to a signatory.

Section 4.11.1 amended so that reference to institutions holding licences under previous regulatory legislation has been removed.

Section 6.6.2 amended to include reference to a new Appendix J.

New Section 6.6.3 added with respect to recording money laundering enquiries as required under paragraph 19 of the Criminal Justice (Money Laundering) Code 2008. Includes reference to a new Appendix K.

Section 6.7.2 amended to reference the Criminal Justice Act 1990 and broaden the reference to civil forfeiture proceedings beyond anti-terrorism legislation.

Section 8.6 amended to include reference to new Appendices J and K.

Appendix B amended to remove the Financial Services Rule Book 2008 and to insert an extract from Rule 6.6 of the Financial Services Rule Book 2009 in respect of anonymous accounts.

Appendix D amended to reference additional classes of Financial Supervision Commission licenceholder.

Appendix E, EIC 1.1 amended to reference additional classes of Financial Supervision Commission licenceholder. EIC 1.2 amended to remove reference to provisions of the Financial Services Rule Book 2008.

Appendix G amended to incorporate two statements issued by the FATF on 18 February 2010 with respect to Iran, Angola, Democratic People's Republic of Korea, Ecuador, Ethiopia, Pakistan, Turkmenistan, Sao Tome & Principe, Antigua and Barbuda, Azerbaijan, Bolivia, Greece, Indonesia, Kenya, Morocco, Myanmar, Nepal, Nigeria, Paraguay, Qatar, Sri Lanka, Sudan, Syria, Trinidad and Tobago, Thailand, Turkey, Ukraine and Yemen.

New Appendix J added providing a template Register of Money Laundering Disclosures.

New Appendix K added providing a template Register of Money Laundering Enquiries.

The amended AML/CFT Handbook can be found at http://www.gov.im/iomfsa/handbooks/guides/AML/

October 2009 Appendix G covering countries and territories that do not or insufficiently apply the FATF Recommendations under paragraph 8(2)(a) of the Criminal Justice (Money Laundering) Code 2008. These amendments recognise the statement issued by the FATF on 16 October 2009 in respect of Iran, Uzbekistan, Turkmenistan, Pakistan and Sao Tome and Principe.
September 2009

Appendix F which is the Isle of Man Financial Crime Unit Disclosure Form has been updated following the implementation of the Proceeds of Crime Act 2009 on 1 August 2009. The Appendix now provides a link to the prescribed Disclosure Form on the Financial Crime Unit's website.

Appendix G covering countries and territories that do not or insufficiently apply the FATF Recommendations under paragraph 8(2)(a) of the Criminal Justice (Money Laundering) Code 2008. These amendments recognise the statement issued by the FATF on 26 June 2009 in respect of Iran, Uzbekistan, Turkmenistan, Pakistan and Sao Tome and Principe and the statement issued by MONEYVAL on 24 September 2009 in respect of Azerbaijan.

In addition, amendments have been made to Section 4.12 Intermediaries with respect to the examples of intermediaries listed.

May 2009

New Appendix A(b) incorporating the Criminal Justice (Money Laundering) (Amendment) Code 2009 which adds the British Virgin Islands to the list of equivalent jurisdictions at Schedule 2 of the Criminal Justice (Money Laundering) Code 2008. Changes made to Appendix C as a result.

New Appendices H(a), H(b) and I incorporating the European Communities (Wire Transfers Regulation) (Application) Order 2007, the European Communities (Wire Transfers Regulation) (Application) (Amendment) Order 2007 and The EC Wire Transfers Regulation (Enforcement) Regulations 2007. Subsequent changes made to Section 5 of the Handbook to reference these new appendices.

Amendments made to Section 4.7.3, Appendix D and Appendix E to ensure conformity with the Criminal Justice (Money Laundering) Code 2008.

April 2009

New Appendix G covering countries and territories that are to be treated as countries and territories that do not or insufficiently apply the FATF Recommendations as per paragraph 8(2)(a) of the Criminal Justice (Money Laundering) Code 2008.

As a consequence, business relationships and one-off transactions with persons or legal arrangements resident or located in such jurisdictions pose a higher risk and must be subject to enhanced customer due diligence.

Consequential amendments throughout the Handbook to make reference to the new Appendix G.

January 2009

Amendments made throughout the Handbook to reflect the coming into statute of the Criminal Justice (Money Laundering) Code 2008. The new Code includes all the items contained in Part 9 of the FSC's Rule Book except for Part 9.3.

August 2008

Issue of new Anti-Money Laundering and Countering the Financing of Terrorism Handbook ("AML/CFT Handbook") to provide guidance to licenceholders on the requirements of the Criminal Justice (Money Laundering) Code 2007 and on Part 9 of the Financial Services Rule Book 2008. This AML/CFT Handbook replaces the Money Laundering and Prevention of Terrorism Guidance Notes (April 2003) as amended.

 

Changes to Anti Money Laundering Guidance Notes

Date Change
May 2008

Criminal Justice (Money Laundering) (Amendment) Code 2008 inserted as Appendix B(c).

This legislation amends Schedule 1 (Relevant business) to the Criminal Justice (Money Laundering) Code 2007 by providing that lending, financial leasing arrangements and the provision of financial guarantees and commitments do not in themselves fall within the definition of "relevant business" contained in the Code where they are provided -

This legislation also adds Monaco to the equivalent jurisdictions listed in Schedule 2 of the Criminal Justice (Money Laundering) Code 2007.

Subsequent changes made to Sections 2.01 and 2.04 of the Anti-Money Laundering Guidance Notes to reference this new legislation and the amendments to Schedule 1.

Appendix D updated to reflect the addition of Monaco to Schedule 2 of the Criminal Justice (Money Laundering) Code 2007.

November 2007

Criminal Justice (Money Laundering) (Amendment) Code 2007 inserted as Appendix B(b). This legislation adds Cyprus to the list of equivalent jurisdictions at Schedule 2 of the Criminal Justice (Money Laundering) Code 2007. Subsequent changes made to Section 2.01 to reference this new legislation.

Appendix D amended to reflect the addition of Cyprus to Schedule 2 of the Criminal Justice (Money Laundering) Code 2007.

September 2007

Amendments made throughout the AMLGN to reflect referencing changes as a result of the new Criminal Justice (Money Laundering) Code 2007 coming into effect on 1 September 2007.

The Criminal Justice (Money Laundering) Code 2007 has also led to further changes as follows:

Section 2.03 amended to provide updated references to Code requirements. Section 2.04 amended to remove section regarding the Anti-Money Laundering (Amendment) Code 1999.

New section 2.04 now relates to businesses covered by the Code and reflects the Code's extension of the requirements to other businesses.

Section 3.01 amended to reflect the requirements of paragraph 6 of the Code regarding Continuing Business relationships.

Section 3.04 amended to reflect new requirements when using the Eligible Introducer system in accordance with paragraph 8 of the Code.

Section 5.01 amended to reflect that the MLRO appointed under the Code must be sufficiently senior with the organisation, or if not within the organisation, have sufficient experience and authority.

Section 6.01 amended to reflect the requirements of paragraph 6 of the Code.

Section 7 amended to reflect the new record keeping requirements of the Code.

Section 8 amended to reflect the requirements in the Code to screen new staff. Appendix B amended with insertion of new Criminal Justice (Money Laundering) Code 2007 to replace the revoked Anti-Money Laundering Code 1998 (as amended).

Appendix D amended to reflect the countries listed in Schedule 2 of the Code.

Appendices F(a) and F(b) amended to reflect the businesses that may be Eligible Introducers under paragraph 8 of the Code and to reflect additional requirements under the Code when utilising the Eligible Introducers' system.

Appendices M(a) and M(b) amended to reflect the businesses that may be Acceptable Applicants under the Code and to reflect additional requirements when utilising the Acceptable Applicants' system.

Appendix N amended to reflect the revocation of the Anti-Money Laundering (Amendment) Code 1999 and requirements of the Code regarding staff screening.

February 2007 Rewrite of Section 4.04 on Wire Transfer Transactions to comply with Financial Action Task Force Special Recommendation VII, the EU Regulation 1781/2006 and the impending Isle of Man European Communities (Wire Transfers Regulation) (Application) Order 2007.
February 2007 Update to Appendix D removing references to HM Treasury's formal notice against Antigua and Barbuda as this notice has been rescinded.
October 2006 Update to Appendix D to reflect the removal of Myanmar from the FATF list of Non-Cooperative Countries and Territories.
July 2006 Section 2.02 amended to reflect the relevant paragraphs of the Banking (General Practice) Regulatory Code 2005.
June 2006 Update to Appendix D to reflect the removal of Nigeria from the FATF list of Non-Cooperative Countries and Territories.
June 2006 Section 3.04 amended to provide explanation of the revised Eligible Introducer's Certificate to be found at Appendix F(b).
June 2006 Section 10 Appendix F(b) revised Eligible Introducer's Certificate.
December 2005 Contents Page amended to include new Appendix B(d).
December 2005 Section 1.04 amended to refer to FATF Special Recommendation IX.
December 2005 Section 2.01 amended to refer to additional anti-money laundering legislation and the Anti-Terrorism and Crime Act 2003
December 2005 Section 2.02 amended to refer to the Fiduciary Services (General Requirements) Regulatory Code 2005
December 2005 Section 2.05 amended to reflect the Anti-Money Laundering (Money Service Businesses) Regulations 2002 and the Anti-Money Laundering (Amendment) Code 2005.
December 2005 Section 3.02(c) amended in relation to adopting a flexible approach to verification of address.
December 2005 Section 3.03 amended to refer to the Fiduciary Services (General Requirements) Regulatory Code 2005.
December 2005 Section 3.04 amended to refer to Fiduciaries and regarding Disclosure of Underlying Principals / Beneficial Ownership.
December 2005 Section 4.04 amended to reflect the current position regarding FATF Special Recommendation VII.
December 2005 Section 7 introductory paragraphs and 7.01 amended to reflect requirements for the retention of transaction records as per the Anti-Money Laundering (Amendment) Code 2005.
December 2005 Section 10 Appendix A amended to refer to second and third EU money laundering directives.
December 2005 Section 10 Appendix B(d), Anti-Money Laundering (Amendment) Code 2005 inserted.
December 2005 Section 10 Appendix D amended to remove Nauru from the list of Non-Cooperative Countries.
December 2005 Section 10 Appendix F(a) amended to reflect the Anti-Money Laundering (Money Service Businesses) Regulations 2002.
December 2005 Section 10 Appendix F(b) amended to reflect the Anti-Money Laundering (Money Service Businesses) Regulations 2002 and the Anti Money Laundering (Amendment) Code 2005.
December 2005 Section 10 Appendix J amended to refer to the Anti-Terrorism and Crime Act 2003.
December 2005 Section 10 Appendix M(a) amended to reflect the Anti-Money Laundering (Money Service Businesses) Regulations 2002.
December 2005 Section 10 Appendix M(b) amended to reflect the Anti-Money Laundering (Money Service Businesses) Regulations 2002 and the Anti Money Laundering (Amendment) Code 2005.
December 2005 Section 10 Appendix N amended to refer to the Anti-Terrorism and Crime Act 2003. Also amended to account for renumbering of Criminal Justice Act 1990.
21/02/2005 Update to Appendix D to reflect the removal of Guatemala, the Cook Islands, Indonesia and the Philippines from the FATF list of Non-Cooperative Countries and Territories.
19/01/2005 Appendix H of the Anti-Money Laundering Guidance Notes has been replaced by the amended Isle of Man Financial Crime Unit Disclosure Forms. This is to reflect the coming into force of the Anti-Terrorism and Crime Act 2003 which supersedes the Prevention of Terrorism Act 1990.
25/10/2004 Appendices E(a) and E(b) of the Anti-Money Laundering Guidance Notes have been updated to take account of new Special Recommendation IX and subsequent amendments to Recommendation 19 of the Forty Recommendations, issued by the Financial Action Task Force on 22 October 2004.
08/04/2004 Update to Appendix D to reflect the removal of Egypt and Ukraine from the FATF Non-Cooperative List.
19/01/2004 Update to Appendix D to include South Africa in the list of countries which can be treated as equivalent territories. St Vincent and the Grenadines has also been removed from the FATF non-cooperative countries and territories list.
16/09/2003 Replacement of Appendix E(a) with the new Forty Recommendations of the Financial Action Task Force on Money Laundering
14/05/2003 Amendments to the January 2003 consultative draft Section 1.04