Oversight

Once registered, a designated business must advise the Authority of any changes in its circumstances, within 14 days of the change. The changes that should be notified include any changes to the information submitted at registration such as contact details or details of those charged with the governance of the business. This change will be notified by the business logging into the online portal on the Authority’s website and updating the forms used at application stage. The system will then notify the Authority who will approve the changes or revert with any queries.

Annual return

Each year, a registered designated business is required to submit an annual return. This is made available on the online portal from the 1 October of each year and must be submitted by 1 November of that year. If the annual return is not submitted by 1 November the Authority will issue a civil penalty to the business in line with the Designated Businesses (Civil Penalties) Order 2015.

The annual return data is used by the Authority in line with its regulatory functions. The data will be used by the Authority in taking a risk based approach in targeting relevant thematic risk profiles, based on the metrics provided, for the purpose of planning future inspections and oversight. The information provided will also assist the Authority in contributing accurate data when reviewing the Island’s National Risk Assessment.

Please see the Designated Business Annual Return Guidance to assist you when completing the annual return.

Delegated oversight powers

At present the Authority has delegated its oversight powers to the following professional bodies:

  • Institute of Chartered Accountants of England and Wales
  • Association of Chartered Certified Accountants
  • Isle of Man Law Society
  • Institute of Certified Bookkeepers
  • Institute of Financial Accountants
  • International Association of Bookkeepers

Should a business wish to be overseen by its professional body, it should elect to do so at registration. Once registration is complete and the oversight body chosen, the choice of oversight body cannot be amended for a period of 3 years.

The professional bodies will be responsible for the oversight process and will feed back to the Authority. Registration and enforcement powers will be retained by the Authority.

Inspections

All registered persons will be subject to a periodic inspections from the Authority or a body to whom the Authority has delegated its powers to test compliance with AML / CFT Legislation. The purpose of an onsite inspection is to test a designated business' compliance with the AML/CFT legislation. It involves testing that the business has adequate procedures in place to prevent and forestall money laundering and terrorist financing and  these procedures are being implemented effectively.

The Authority (or professional body) may provide feedback on any weak areas or any areas where a business may not be in compliance with the legislation. Where appropriate, the Authority may issue a civil penalty for non-compliance with the AML/CFT legislation in line with the Anti-Money Laundering and Countering the Financing of Terrorism (Civil Penalties) Regulations 2019.