AML/CFT Annual Statistical Return Update

Published on: 05 November 2024

The Isle of Man Financial Services Authority (“the Authority”) is currently implementing improvements to the AML/CFT Annual Statistical Return (“the Return”) for the year 2024, which will be issued in January 2025 for completion by 31 March 2025.

The Authority’s AML/CFT Supervision Division (“the Division”) has been analysing the data from the 2023 Return and reviewing the outcomes from the first year of utilising STRIX. The Division has also reviewed feedback from industry and work is underway to improve the 2024 Return. Improvements include rephrasing and simplifying questions where appropriate and strengthening the accompanying guidance, removing and adding questions where relevant with the aim of enhancing the user’s overall experience of the Return.

Over the coming weeks, the Authority will issue a further press release explaining the changes, along with a STRIX Annual AML/CFT Return ‘changes log’ to provide additional detail.

These updates are essential as the Authority continues its transition to the STRIX system. The Return has been in operation since 2016 for Financial Institutions, becoming mandatory for DNFBPs in 2022; the 2024 Return will be its 9^th issuance.

As with other regulators and jurisdictions globally, the Authority seeks to be aligned to international standards and aims to work with the most accurate and up-to-date data available to inform the risk-based approach and allow for more efficient decision-making. The data collected is also instrumental as the Island works to publish its 3^rd National Risk Assessment (“NRA”) .

In order to support the risk-based engagement planning which takes place in April of each year, the Authority needs to be working with the most recent data. As a result, the new deadline for the Return as at December 31^st will be the 31^st of March each year. The updated Return guidance, containing a list of questions will be available to firms in early December 2024.

Ashley Whyte, Head of the Authority’s AML/CFT Supervision Division, said: “Since the introduction of the 2016 Return, the Authority is focused on increasing and improving its data gathering in order to enhance the risk assessments at a firm level and better inform risk-based decisions. There was a significant change last year with the introduction of STRIX generating benefits for the Authority and Island firms through smoother and more accurate data gathering and analysis. We have learned from that experience and worked closely with the developers on additional functionality and improvements. The improvements reflect the valuable feedback from industry who have embraced the STRIX Return.

We thank industry for their cooperation over the years with this initiative which has resulted in significant amounts of data to support our risk-based approach and the Island’s NRA. We will also be publishing reports on the data for every sector in due course in order to feed back the key observations at sectoral level.”