International Perspective and Assessments

The Isle of Man Government and the Isle of Man Financial Services Authority are fully committed to continually reviewing the Island's legislation and regulations against the applicable international standards in relation to anti-money laundering and the countering of terrorist financing. The relevant international standards in the fight against financial crime are the 40 Recommendations issued by the Financial Action Task Force (“FATF”) further information and a copy of these standards entitled the 'International standards on combating money laundering and the financing of terrorism & proliferation' (the “FATF Recommendations”) are available from the FATF website or by following this link. Although not a member of the FATF the Island fully endorses FATF's recommendations.

In 2008/2009 the IMF conducted a Financial Sector Assessment Programme (“FSAP”) on the Isle of Man covering the Island’s compliance with international standards for anti-money laundering and countering the financing of terrorism, the Insurance Core Principles issued by the International Association of Insurance Supervisors and the Basel Core Principles for Effective Banking Supervision.

The report concludes that “…the Isle of Man is broadly compliant with most aspects of the FATF recommendations…”, having continued to upgrade its requirements significantly. In addition, the report found that the Island has a general high standard of financial sector regulation and supervision. The report also noted that “the Isle of Man authorities take their responsibilities in the area of international co-operation seriously”, citing supervisory co-operation, mutual legal assistance and tax information exchange agreements.

On the 10 October 2012 the Council of Europe ‘s Committee of Ministers passed resolution CM/Res (2012)6 authorising the participation of the Isle of Man in the mutual evaluation process and procedures of the Committee of Experts on the Evaluation of Anti-Money Laundering Measures and the Financing of Terrorism (“MONEYVAL”). This allows the Isle of Man to participate in MONEYVAL’s evaluation and follow-up procedures.

As the Island is a member of MONEYVAL, not the European Union (“EU”), the Island is assessed against the FATF 40 Recommendations rather than the EU’s Anti-Money Laundering Directives (“AMLDs”).  Though the Island may look to implement various provisions of the AMLDs, it is not obliged to as it is not an EU member state.    

The latest on-site evaluation took place in Q2 of 2016 under MONEYVAL’s 5th round of evaluations and the report was published on 27 January 2017. A press statement issued by the Cabinet Office regarding the publication of the report can be found here.

In 2018 MONEYVAL published a follow up report which analysed the Isle of Man’s progress in addressing the technical compliance deficiencies identified in the mutual evaluation report. The report also looked at whether the Isle of Man has complied with the new requirements of those FATF Recommendations that have changed since 2016.

The report concluded that ‘Overall, the Isle of Man made commendable progress in addressing the TC deficiencies identified in its 5th Round MER and was re-rated on 8 Recommendations (8 upgrades).’ The report can be found here. The full details of the Island’s Technical Compliance ratings can be found in the below table:

 

R1

R2

R3

R4

R5

R6

R7

R8

R9

R10

LC

C

C

LC

C

C

LC

LC

C

LC

R11

R12

R13

R14

R15

R16

R17

R18

R19

R20

LC

LC

C

LC

C

C

LC

LC

C

C

R21

R22

R23

R24

R25

R26

R27

R28

R29

R30

LC

LC

PC

LC

PC

LC

LC

LC

C

C

R31

R32

R33

R34

R35

R36

R37

R38

R39

R40

C

C

C

LC

LC

LC

LC

LC

C

LC

C = Compliant

LC = Largely Compliant

PC = Partially Compliant