Feedback invited on Beneficial Ownership proposals

The Isle of Man Financial Services Authority is inviting feedback on measures aimed at encouraging compliance with the Island’s Beneficial Ownership legislation.

A consultation has been published on the Government website today, Tuesday 1 February 2022, on the proposed introduction of new Civil Penalties Regulations.

The Authority intends to broaden the scope of contraventions of the Beneficial Ownership Act 2017 for which a civil penalty can be considered, including those where currently only criminal sanctions are available.

This will strengthen the Authority’s ability to deal with offences in an effective manner and apply sanctions proportionate to the seriousness of the offence.

For example, the Regulations provide for a civil penalty of £1,000 for a less serious contravention, such as failure to keep a record of a nominated officer. The only option available under the current legislation is a criminal sanction.

Enforcement of the Beneficial Ownership Act is critical to safeguarding the Isle of Man’s international reputation and supports the Authority’s regulatory objectives of maintaining confidence in the financial services sector and reducing financial crime.

The Authority has oversight of the Island’s Register of Beneficial Ownership, which is maintained by the Companies Registry of the Department for Enterprise.

Responses to the consultation on the Draft Beneficial Ownership (Civil Penalties) Regulations 2022 should be submitted by 28 February 2022.

Comments can be sent by email to Policy@iomfsa.im or by post to Dan Johnson, Senior Manager, Policy and Authorisations, IoM Financial Services Authority, PO Box 58, Finch Hill House, Bucks Road, Douglas, IM99 1DT.

The feedback will help to inform the proposed changes, which are intended to come into operation on 30 June 2022, subject to Tynwald approval.