Designated Business Annual Return merged with AML/CFT - Statistical Return
The Isle of Man Financial Services Authority is implementing important changes to the annual return process in order to simplify and streamline the reporting requirements for designated businesses.
In future, the Authority will require designated businesses to complete only one return – an AML/CFT Statistical Return in the format of an Excel spreadsheet.
This will allow us to capture key data points from designated businesses that are consistent with those obtained for regulated entities.
AML/CFT Statistical Returns are a key part of our intelligence gathering and help to inform the picture of risk across the registered and regulated sectors.
As well as updating the format of the return, we are also changing the reporting period, the submission date, and the amount of time registered businesses have to populate the return.
The information below sets out the new requirements and what they will mean for you. If you have any questions, please do not hesitate to contact firstname.lastname@example.org
- As required by section 13(1)(a) of the Designated Businesses (Registration and Oversight) Act 2015 (“the Act”), a registered person must for each year of registration, submit to the Authority an annual return as specified by the Authority.
- In previous years, the Authority specified that the return required by section 13(1)(a) of the Act is to be submitted via the DNFBP portal (iomdnfbp.co.im) in the form of an annual AML/CFT Return.
- With effect from 15 February 2023, the Authority specifies that the return as required by section 13(1)(a) of the Act shall now be in the form of the AML/CFT Statistical Return (Guidance for the Annual AML/CFT Statistical Return).
- Going forward, no annual returns will be generated via the DNFBP portal.
- Any updates to designated businesses such as change of address or change in specified persons should continue to be submitted via the DNFBP portal.
- Although all registered persons were required to complete the designated business annual return on the portal, in recent years 40% of registered persons also completed the AML/CFT Statistical Return.
- Having only one return will simplify and streamline the reporting requirements for designated businesses.
- The AML/CFT Statistical Return will allow the Authority to obtain key data points from designated businesses which are consistent with the data being obtained for regulated entities to inform the picture of risk across both registered and regulated sectors.
- Relating specifically to designated businesses registered as legal professionals, the AML/CFT Statistical Return previously allowed for reporting on ‘matters’ as opposed to customers. To ensure the data collected is consistent across all registered and regulated entities as well as being aligned to the requirements of the Isle of Man’s AML/CFT Legislation, the AML/CFT Statistical Return is to be completed on customers rather than matters.
- The AML/CFT Statistical Return is in the format of an excel spreadsheet which is to be populated by the registered person and provided to the Authority by e-mail to email@example.com
- As well as the change in the format of the return for designated businesses, there are also changes to the reporting period, the submission date, and amount of time registered businesses have to populate the return. The Authority is publishing this statement now in order to give affected businesses as much notice as possible of the changes:
- Previously, the annual return became available on the portal on 1st October each year, for a reporting period up to 30th September, and was due to submission by 1st November each year - meaning registered persons had 31 days to populate and submit the return.
- The AML/CFT Statistical Return is to be populated with a reporting period up to 31st December and due to be submitted by 30th June the following year - meaning registered persons now have up to 6 months to populate and submit the return.
- This year, all designated businesses registered under the Act as at 31st December 2022 are required to submit an AML/CFT Statistical Return by 30th June 2023 for the reporting period ended 31 December 2022. For designated businesses registered after 31st December 2022, the first reporting period will be up to 31st December 2023 and due for submission 30th June 2024. For the avoidance of doubt, no annual return will be required to be submitted on the DNFBP portal.
- The Authority is planning on hosting a webinar or seminar to provide an overview of the AML/CFT Statistical Return and how the data will be used by the Authority. Details of this event will be shared in the coming weeks.
- Failure to submit the AML/CFT Statistical Return by 30th June 2023 will result in a civil penalty being issued in line with the Designated Businesses (Civil Penalties) Order 2015.
If you have any questions or require any assistance completing the AML/CFT Statistical Return, please contact firstname.lastname@example.org