Findings of Moneylenders questionnaire published

The Isle of Man Financial Services Authority has published a report capturing the findings of a questionnaire issued to Island Moneylenders.

Phase One of the sector thematic review examines how firms are meeting their obligations in respect of customer due diligence (CDD) and enhanced customer due diligence (ECDD), with a particular focus on source of funds (SOF) and source of wealth (SOW) requirements.

The report, which is available to view on the publications section of the Authority’s website, outlines the responses provided by a total of 37 Moneylenders.

CDD and ECDD procedures and controls are crucial to appropriately managing and mitigating the risks of money laundering, terrorist financing and proliferation financing. Without robust processes it is not possible for firms to conduct effective risk assessments, monitor business relationships and transactions for unusual or suspicious activity, or make meaningful disclosure of suspicions to the Isle of Man Financial Intelligence Unit.

Firms across all sectors of the financial services industry are encouraged to read the Moneylenders Phase One report and consider any action necessary to ensure their own CDD and ECDD systems and controls are effective, up-to-date and properly documented.

Phase Two of the thematic review is now underway and involves focused inspections to test and evidence Moneylenders’ compliance with the AML/CFT Code 2019 in relation to CDD and ECDD.

Ashley Whyte, Head of AML/CFT Supervision at the Authority, said: ‘Customer due diligence and enhanced customer due diligence are integral to an effective AML/CFT regime. It is essential that firms know who they are dealing with and the risks associated with each customer. Having in place the right procedures and controls helps to counter potential criminal abuse of the Island’s financial systems.’