Isle of Man Anti Money Laundering Laws

Most links point to iomfsa.im

Background

The Isle of Man Anti Money Laundering rules apply to ‘Relevant Businesses’ operating within ‘regulated sectors’ on the Island. They are enforced by the Financial Services Authority.

‘Relevant Businesses’ are those prescribed within the Regulated Activities Order 2011 (unless exempted) and also those (such as accountants, estate agents and virtual currency businesses) which are known as ‘designated businesses’ and are detailed in the Designated Business Act.

The principal legislation in the Isle of Man relating to AML / CFT is the Proceeds of Crime Act 2008.

‘Relevant Businesses’ operating within the Regulated Sector in the Isle of Man are required to comply with the AML / CFT Code. This legislation changes frequently please look up the latest versions yourself.

The AML/CFT code sets out the detailed requirements for relevant businesses to:-

(1) Have suitable procedures and controls (Procedures manual)
(2) Operate a risk based approach – prepare the following :- Business risk assessment / Customer risk assessment / Technology Risk assessment
(3) Take customer due diligence (identification) in respect of customers & undertake ongoing monitoring in respect of customers
(4) Appoint a money laundering reporting officer (‘MLRO’) and implement clear internal and external reporting procedures.
(5) Maintain formal registers of (i) Disclosures (a) Internal (b) External (c) Any other FIU (ii) ML FT enquirers received.
(6) Test and monitor those procedures
 

The Financial Services Authority also publish a (surprising readable) AML / CFT Handbook which sets out the expected implementation of the requirements in practice.