Authority publishes findings of proliferation questionnaire

The Isle of Man Financial Services Authority has published the findings of a questionnaire issued to supervised entities relating to proliferation financing (PF).

Responses provided by a total of 586 firms will help to inform the Island’s next National Risk Assessment, as well as raise awareness of evolving PF risks.

The Proliferation Financing Questionnaire Report, which is available to view on the Publications section of the Authority’s website, highlights examples of good practice and areas for improvement.

The project forms a key part of the work being carried out to understand the procedures and controls put in place by Island firms to support the effective prevention of proliferation of weapons of mass destruction.

Analysis of the data will assist the Authority, in conjunction with other Government agencies, to determine the steps needed to help firms meet their PF obligations in respect of the Anti-Money Laundering and Countering the Financing of Terrorism (AML/CFT) Code 2019.

The Authority issued the PF questionnaire through its AML/CFT software system in January 2024 and achieved a 98% response rate. Information submitted by industry provides an insight into the level of understanding of PF among firms and the training provided to members of staff.

It is considered vital for the Isle of Man to remain alert and ready to respond to emerging threats in all aspects of international financial crime, part of which includes conducting the National Action Plan. Firms are encouraged to read the PF Questionnaire Report and consider any action necessary to ensure their own compliance regimes are effective, up-to-date and properly documented.

David Baker, Senior Manager, AML/CFT Supervision Division, said: ‘The response to the questionnaire was excellent and we’d like to thank all the firms that took part. The financial services industry has an important role to play in countering PF and businesses must be aware of the risks of their services being used to provide funding for proliferation activity. It is important for firms to know their customers and understand their customers’ activities, as well as any parties linked to them. Along with other Government agencies, the Authority will be conducting further outreach and engagement with industry to raise awareness of PF-related matters.’

Notes for editors:

The Financial Action Task Force defines Proliferation Financing as: “The act of providing funds or financial services which are used, in whole or in part, for the manufacture, acquisition, possession, development, export, trans-shipment, brokering, transport, transfer, stockpiling or use of nuclear, chemical or biological weapons and their means of delivery and related materials (including both technologies and dual-use goods used for non-legitimate purposes), in contravention of national laws or, where applicable, international obligations.”