New technology to support AML/CFT supervision

Investment in technology and automation will further strengthen the Isle of Man’s compliance with international standards relating to anti-money laundering and countering the financing of terrorism (AML/CFT).

 

The IOM Financial Services Authority and IOM Gambling Supervision Commission are jointly rolling out a new data collection and risk assessment tool to support the AML/CFT supervision of Island firms.

 

STRIX AML has been developed in line with recommendations set by the Financial Action Task Force (FATF), the organisation that leads global efforts to tackle money laundering, and terrorist and proliferation financing.

 

The software solution enables supervisors to gain a deeper understanding of AML/CFT risk, and to focus their resources on the firms and sectors that pose the biggest threats.

 

The Authority and GSC have been collaborating with Austria-based software development firm Financial Transparency Solutions to implement STRIX, as part of work to enhance the effectiveness of their AML/CFT frameworks.

 

Benefits of the new system include the streamlining of data collection and analytics, greater automation of the risk assessment process, and the accurate identification of firms with an elevated ML/TF risk.

 

In addition to improving the efficiency and effectiveness of AML/CFT supervision, STRIX makes it easier for firms to provide the required data through a dedicated online portal.

 

The Authority and GSC will be conducting a programme of outreach and engagement with firms to support the smooth implementation of the technology.

 

Ros Lynch, the Authority’s Head of Innovation Strategy, said: ‘The use of STRIX supports our transition to a more data-led and risk-based approach to financial supervision. As well as boosting our overall effectiveness, this solution will enhance our interaction with Island firms and streamline the AML/CFT annual returns process.’

 

Helen Ault, Director AML/CFT & Enforcement at the GSC, added: ‘Compliance with AML/CFT international standards is crucial in terms of maintaining the Isle of Man’s reputation as an excellent place to do business. Joining forces with the Authority to adopt a common system makes a lot of sense and will support a consistent approach to AML/CFT data collection and risk assessment.’

 

Garrett Dunker, Director at Financial Transparency Solutions, said: ‘The automation provided by STRIX saves supervisory authorities time and resources, and makes complex risk analysis easier to handle. We have enjoyed working in partnership with the Financial Services Authority and Gambling Supervision Commission and are confident they will see immediate and longer-term benefits.’