MONEYVAL Frequently Asked Questions

MONEYVAL, the Committee of Experts on the Evaluation of Anti-Money Laundering Measures and the Financing of Terrorism, has confirmed that it will conduct its onsite evaluation of the Isle of Man in October 2026. The independent assessment will test the Island’s effectiveness in countering money laundering, terrorist financing and the proliferation of weapons of mass destruction.

The Isle of Man takes its international responsibilities very seriously and seeks at all times to protect its communities and businesses from the harms caused by financial crime. The FAQs below explain more about MONEYVAL, the Financial Action Task Force, the mutual evaluation process and why it is important to the Island.

The Financial Action Task Force (FATF) leads global action to tackle money laundering, terrorist and proliferation financing. 

The inter-governmental body sets international standards that aim to prevent these illegal activities and the harm they cause to society. As a policy-making body, the FATF works to generate the necessary political will to bring about national legislative and regulatory reforms in these areas.

In total, more than 200 countries and jurisdictions have committed to implement the FATF’s Standards as part of a co-ordinated global response to preventing organised crime, corruption and terrorism.

The FATF was established in 1989 and is based in Paris.

The FATF researches how money is laundered and terrorism is funded, promotes global standards to mitigate the risks, and assesses whether countries are taking effective action.

Countries are evaluated against these international standards for combating money laundering, the financing of terrorism and the financing of proliferation (AML/CFT/CPF) and are assessed to determine the effectiveness of their implementation.

MONEYVAL is a permanent monitoring body of the Council of Europe. It is a FATF-style Regional Body (FSRB), and as such undertakes mutual evaluations in respect of assessing countries' compliance with the FATF standards. MONEYVAL makes recommendations to national authorities in respect of necessary improvements to their AML/CFT/CPF regime.

The FATF and SRBs assess each member’s implementation of the FATF standards on an ongoing basis. The FATF Methodology sets out the assessment process which focuses on two distinct areas: 

  • Technical compliance - each assessment also looks at whether a country has all the necessary laws, regulations and legal instruments in place, in line with the technical requirements of the 40 FATF Recommendations. This legal, regulatory and operational framework forms the basis for an effective system to deprive criminals from the proceeds of their crimes and terrorists from their funding. 

Each of the 40 Recommendations will be rated one of the following:

  • Compliant (C)- No shortcomings have been identified
  • Largely Compliant (LC)- Only minor shortcomings have been identified
  • Partially Compliant (PC)- Moderate shortcomings have been identified
  • Non-compliant (NC)- Major shortcomings have been identified

 

  • Effectiveness - each assessment will have a significant focus on effectiveness, to ensure that countries are implementing and making use of the laws, regulations and policies that are being passed. A country must demonstrate that, in the context of the risks it is exposed to, it has an effective framework to protect the financial system from abuse.

The Effectiveness assessment comprises 11 components named the Immediate Outcomes, or IOs:

Immediate Outcome

Subject

IO1

National Risk Understanding and Coordination

IO2

International Coordination

IO3

Supervision of financial institutions and Virtual Asset Service Providers (VASPs)

IO4

Supervision of Designated Non-Financial Businesses and Professions (DNFBPs)

IO5

Legal Persons and Arrangements

IO6

The Use of Financial Intelligence

IO7

Investigation and Prosecution of Money Laundering

IO8

Confiscation of Criminal Proceeds and Instrumentalities

IO9

Investigation and Prosecution of Terrorist Financing

IO10

Implementation of Targeted Financial Sanctions relating to Terrorist Financing and the Prevention of Abuse of the Non-Profit Organisation (NPO) sector for Terrorist Financing

IO11

Implementation of Targeted Financial Sanctions relating to Proliferation Financing

 

With regards to the assessment of Effectiveness of the measures put in place, the assessment team will allocate one of four effectiveness ratings to each of the 11 IOs:

  • High level of Effectiveness (HE)- The IO is achieved to a very large extent and minor improvements are required
  • Substantial level of Effectiveness (LE)- The IO is achieved to a large extent and moderate improvements are required
  • Moderate level of Effectiveness (ME) - The IO is achieved to some extent and major improvements are required; and
  • Low level of Effectiveness (LE)- The IO is not achieved or is achieved to a negligible extent and fundamental improvements are required

The MONEYVAL assessment is carried out in the form of a Mutual Evaluation.

The Mutual Evaluation is conducted by a team of evaluators comprising experts from a number of MONEYVAL member jurisdictions and members of the MONEYVAL Secretariat. They assess the two key elements - Technical Compliance and Effectiveness.

The MONEYVAL assessment comprises a number of different stages which include:

  • The submission to MONEYVAL of questionnaires in respect of both technical compliance with the standards and the effectiveness of the measures in place
  • Consideration by the assessment team of the information submitted
  • An onsite visit by the assessment team, during which they will interview the public and private sector
  • A reporting process which involves a number of drafts of the Mutual Evaluation Report (MER) that will be produced by the assessment team. The assessors set out in the MER their findings regarding technical compliance and effectiveness and provide recommendations in respect of where improvements should be made
  • Consideration and discussion at the MONEYVAL Plenary of the MER and the establishment of follow up measures to be taken by the Isle of Man and the manner in which progress in implementing these will be reported to MONEYVAL

The FATF Recommendations are applicable to all countries, and as such the Isle of Man is part of an ongoing cycle of Mutual Evaluations undertaken in order to test compliance with the FATF Methodology. In the case of countries that are members of an FSRB, these assessments are undertaken by that FSRB, namely MONEYVAL for the Isle of Man.

The onsite visit by the assessment team will take place over a period of around 3 weeks in October 2026. The specific dates will be confirmed in January 2026.

The overall Mutual Evaluation process will take place over 18 months. This process includes multiple drafts of the Mutual Evaluation Report being shared with the jurisdiction prior to a final draft being shared across the MONEYVAL membership for comment.

In October 2025, MONEYVAL will visit the Isle of Man to conduct training with representatives from the public and private sectors. This will be the official start of the Mutual Evaluation process.

Work has been in progress in preparation for the assessment long before these dates were confirmed.

Meeting the principal international standards to counter ML, TF and PF is an important aspect of being a responsible and reputable international finance centre.

The Mutual Evaluation process will give the Island recommendations on how to improve the AML/CFT/CPF regime, if it is concluded that major improvements are required this can be costly to the Island. If the Mutual Evaluation identifies strategic deficiencies in a country's AML/CFT/CFP regime, the country can be placed under increased monitoring. If the country does not resolve identified shortcomings within agreed timeframes, it will be added to FATF's list of jurisdictions with strategic deficiencies in their AML/CFT system, known as the Grey List.

The Isle of Man is committed to playing its role in the global fight to combat ML, TF and PF. The Island’s Financial Crime Strategy 2024 - 2026 highlights that the economy is reliant on the financial services and e-Gaming sectors for a large percentage of its national income. Therefore it is important that there is vigilance and strong processes and governance to protect the Island from being exploited for ML, TF or PF purposes.

The Isle of Man Government is currently in the process of updating the National Risk Assessment which will further inform the risk understanding across all relevant stakeholders in the AML/CFT/CPF regime.

To assist the assessment team in its evaluation, the Island is required to submit a large amount of documentation and responses to two separate questionnaires, one in relation to Technical Compliance against the FATF's 40 Recommendations and the other relating to the Island’s effectiveness in meeting the 11 IOs.

In addition to the written submissions, the assessors will engage, during the course of their visit in October 2026, with all of the Island’s competent authorities involved in the fight against ML/TF/PF. These meetings will focus in on areas that the assessment team have a particular interest in or require further clarity on, using the submissions on the two questionnaires.

An important element of the onsite visit is interviews with the assessment team and representatives of firms across all sectors. A number of firms will be interviewed by the assessors as they seek to understand how well financial crime risk is understood on the Island, and how well businesses apply preventative measures.

No, the assessors will consider a large amount of information as part of their evaluation, and the industry interviews are just one component part of that information. In isolation the interviews will not determine how well the Island performs in the assessment, but it is important that all parties being interviewed can demonstrate their understanding of National Risk and are able to describe to the assessment team the AML/CFT/CPF frameworks that are in place in their individual businesses.

As there is a number of components that form part of a Mutual Evaluation, there is not one singular interview, sector or framework that will determine the overall outcome, but a combination of elements will be a determining factor.

There are a number of outcomes which can result from the Mutual Evaluation, and these are:

  • Regular Follow-up- This is the default monitoring system where no material issues or deficiencies are identified in a jurisdiction's AML/CFT/CPF regime and involves regular reporting to the Plenary on progress of enhancements being made.
  • Enhanced Follow-up- This is a much more intensive reporting process to the Plenary on progress to resolve significant deficiencies identified by the assessment team. Countries who have not made sufficient progress in their remediation can also go from Regular to Enhanced Follow-up.
  • Grey-listing- Countries can be placed directly onto the Grey-list if the deficiencies identified are serious enough to warrant this. Alternatively, countries can be added if insufficient progress has been made within a year of the Plenary taking place to address significant deficiencies.
  • Non-Equivalent jurisdiction- Deficiencies identified in a jurisdiction's regime can result in other jurisdictions no longer being able to rely on its regulatory framework and enhanced due diligence measures being required in respect of individuals and companies connected to that jurisdiction.

No matter the outcome of the assessment, recommended actions are inevitable. The Mutual Evaluation is an opportunity for the Isle of Man to showcase its efforts in the fight against ML/TF/PF, to ensure it is meeting international standards as they evolve, and to further strengthen its AML/CFT/CPF regime.

Work in respect of the Mutual Evaluation process has been ongoing for some time, and work is continuously underway in order to enhance the AML/CFT/CPF Framework. Since the last evaluation in 2016, there has been changes to frameworks and legislation in order to ensure that we are still compliant with the FATF 40 Recommendations. There has been a lot of work done to ensure that we can also evidence that we have an effective AML/CFT/CPF regime.

The Isle of Man competent authorities will be engaging directly with industry in the lead up to the MONEYVAL assessment with the intention of raising awareness about important financial crime risk matters and the MONEYVAL process itself. Events will be run for industry before the assessment, focusing on a range of issues including the National Risk Assessment.

Some industry representatives may be invited to the country training being held in October 2025.

The industry representatives that will be required to attend the interviews being held at the onsite visit in October 2026 will be chosen by the assessment team and will be informed closer to the time.

  • Ensure that they and their businesses have a sound understanding of the ML/TF/PF risks facing the Isle of Man, the Financial Crime Strategy 2024 - 2026, and the legislative and regulatory frameworks in place on the Island in this regard.
  • Ensure that they and their businesses have a clear understanding of ML/TF/PF risks facing them and the manner in which those risks are managed.
  • Ensure a sound understanding of the AML/CFT/CPF obligations that are applicable to them and their businesses, and the internal AML/CFT/CPF frameworks that are in place to ensure that they continue to meet those obligations, including the prevention and detection of ML/TF/PF and the reporting of suspicions.
  • Be prepared to assist Isle of Man agencies with the collection and sharing of relevant information and data both in the lead up to, and during, the onsite visit by the assessment team in October 2026.
  • Take note and promote awareness of any events and publications involving the relevant island agencies in the lead up to the MONEYVAL visit.

The international standards have evolved since the last evaluation undertaken by MONEYVAL in 2016. Evidencing our effectiveness will be key and the bar is set much higher, we are expected to be able to demonstrate that we have made progress in our efforts since 2016 and the process is anticipated to be even more robust than last time.

No, the Mutual Evaluation considers Financial Institutions such as Banks, Investment and Fund Managers and Life Insurers, as well as DNFBPs such as Trust and Company Services Providers (considered to be DNFBPs under the FATF standards), VASPs, Accountants, e-Gaming, Lawyers, Lenders and Estate Agents. The NPO sector will also be subject to assessment.

It also assesses how the various agencies, regulators and government bodies involved in these areas exercise their responsibilities in relation to the FATF Methodology.

The Isle of Man Government has the overall responsibility for ensuring that the Island’s AML/CFT/CPF Framework complies with international standards in an effective manner. A number of different agencies are involved in ensuring that the Isle of Man is best placed to prevent and detect ML/TF/PF and to deprive criminals of their proceeds of crime. The competent authorities are:

  • Cabinet Office
  • Attorney General’s Chambers
  • Isle of Man Constabulary
  • Department for Enterprise
  • Financial Intelligence Unit
  • Financial Services Authority
  • Gambling Supervision Commission
  • Department of Home Affairs
  • Treasury
  • Isle of Man Central Registry

You are encouraged to share these FAQs with staff, as well as reminding them of their own obligations in respect of AML/CFT/CPF matters and providing them with relevant training in this regard.

Where relevant also share the National Risk Assessment and related publications with staff members and ensure they are familiar with the findings.

These FAQs will be a good starting point to share with both clients and staff members.

It is not the intention of the Isle of Man Government to release its expectations with regard to the outcome of the MONEYVAL Mutual Evaluation, instead efforts are focused on ensuring that the Island is as best placed as it can be for the assessment.

With regards to when the public might know the result of the assessment, the final report is due to be formally considered and adopted at the MONEYVAL Plenary scheduled for May 2027. The final outcome will only be known when the Mutual Evaluation Report is adopted at the Plenary and publication of the report would be expected around June 2027, given that there are no issues with quality and consistency.

Recommended actions are inevitable for all jurisdictions, regardless of how well prepared they are, and how well they perform in the assessment. This will be the case for the Isle of Man also. The evaluation is in effect part of a continuing assessment, and the recommended actions are critical for ensuring that the Isle of Man continues to fight ML/TF/PF effectively with its international partners.

The best outcome would be to be placed into Regular Follow-up which is described earlier in these FAQs.

Ultimately the evaluation is an opportunity for the Isle of Man to demonstrate its efforts towards the prevention and detection of ML/TF/PF and depriving criminals of their proceeds of crime, and to ensure it is meeting international standards as they evolve.

The various stakeholders involved in preparing the Island for its MONEYVAL assessment have been working hard to ensure that we are as best placed as we can be for the assessment.

The assessment could result in one of the outcomes set out earlier in these FAQs. Whatever the outcome, the Isle of Man Government and all relevant competent authorities will work together to ensure that any recommendations arising out of the Mutual Evaluation are prioritised and addressed as soon as possible after the adoption of the final report by the MONEYVAL Plenary.