Work taking place to update National Risk Assessment

Businesses are being encouraged to work in collaboration with Government agencies to support the publication of an updated National Risk Assessment (NRA) for the Isle of Man.

Work is under way to collate and analyse information already held, as well as to gather the additional data and feedback required to identify threats to the Island in relation to money laundering (ML), terrorist financing (TF), and proliferation financing (PF).

The NRA, which is scheduled for publication early in 2025, is fundamental to protecting the Island from financial crime and is a crucial element of the Island’s commitment to meeting international standards.

The assessment looks in detail at current and emerging risks in relation to the Island’s financial and specified non-financial sectors, and the measures in place to mitigate those risks. The findings will inform national policies and help to focus resources where they are most needed.

A ‘ground up’ approach will be used to inform the updated NRA, with sector and topic-based assessments helping to build an overall picture of risk.

Outreach with businesses will be ramped up in the months ahead to enhance awareness and invite input from industry. Government’s AML Policy Office will coordinate sessions for relevant professional and industry bodies to explain how firms can support the process, and what they can expect in terms of data requests.

Engagement is already taking place with the Island’s banking sector, while a number of firms have responded to a questionnaire to provide PF data that will form a vital part of the forthcoming assessment.

Conducting an NRA is a requirement of the Financial Action Task Force (FATF), the body that sets international standards aimed at combatting ML, TF and PF. This will be the Isle of Man’s third NRA, building on the reports published in 2015 and 2020.

The maturity of the Island’s AML/CFT technical framework was demonstrated in the outcome of the 2016 MONEYVAL assessment. This rated the Isle of Man as compliant or largely compliant in 39 out of 40 FATF recommendations, which puts the Island among a select group of nations in the world.

Since 2016, the Island has strengthened its national response to ML, TF and PF risks, including significant investment in financial intelligence, criminal investigation, and asset recovery. Data collection has also improved through AML/CFT returns and financial flow information from deposit takers provided to the Financial Services Authority.

The latest NRA process is part of the continual monitoring of the AML/CFT regime and will enable the Island to stay alert to emerging trends and risks, as well as combatting existing threats.

Chief Minister Alfred Cannan MHK said: ‘As a leading international finance centre, the Isle of Man has a responsibility to identify the threats posed by money laundering, terrorist financing and proliferation financing. The National Risk Assessment is an important part of efforts to protect the integrity of our financial system and maintain the Island’s reputation as an excellent place to do business.’

He added: ‘Meeting international standards remains a priority for the Government and it is essential that everyone works together in the best interests of the Isle of Man. I would encourage businesses to support the process and engage positively with Government agencies in the year ahead.’

A provisional timetable setting out key milestones in the NRA process is available to view online.