Consultation on the draft Anti-Money Laundering and Countering the Financing of Terrorism (Amendment) Code 2018

The Department of Home Affairs has today issued a draft Anti-Money Laundering and Countering the Financing of Terrorism (Amendment) Code 2018 for the attention of industry. 

The proposals set out in this draft amendment Code will give effect to recommendations made in the Mutual Evaluation Report issued by MONEYVAL following its Fifth Round Mutual Evaluation of the Isle of Man.  The proposals may be of interest to all regulated persons and designated businesses. The Department of Home Affairs welcomes feedback from interested parties.  Comments should be sent to Kelly Mercer of the Isle of Man Financial Services Authority at the contact details below, who is collating responses on behalf of the Department.

The Isle of Man Financial Services Authority has sent details of this consultation to all regulated persons, designated businesses and representative industry bodies recognising that some firms may wish to submit comments through their representative industry body.

The draft amendment Code can be accessed here.

A tracked changes version of the Anti-Money Laundering and Countering the Financing of Terrorism Code 2015 showing the proposed amendments can be found here, and a clean version showing the proposed amendments can be found here.

Why we are consulting:

To obtain information and views in respect of the proposed amendments to the Anti-Money Laundering and Countering the Financing of Terrorism Code 2015.

The main proposed amendments to the Code are:

  • The introduction of requirements to conduct sanctions screening;
  • The introduction of the need to consider whether the relevant person has met the customer in the course of business when conducting client risk assessments;
  • The introduction of Paragraph 10A which places requirements on a relevant person to undertake certain considerations in cases of introduced business;
  • Expansion of the requirements of Paragraph 21 to bring it in to line with FATF requirements; and,
  • Amendment of Paragraph 23 to ensure that it only deals with instances where a relevant person places reliance on an eligible introducer.

Closing date

The amendments set out in the draft Anti-Money Laundering and Countering the Financing of Terrorism Code 2018 are considered by the Department to be strategically important to the Island’s proposition as a responsible international finance centre and a short consultation period is required to enable the proposals, subject to any material issues raised through the consultation process, to be brought into effect as soon as is practicable.  As a result this consultation will close at close of business on 11th September 2018.

Contact: Kelly Mercer (Manager, AML Unit, Enforcement Division) +44 1624 689353 or [email protected]