Isle of Man's money laundering risk ‘medium high’ assessment shows

The Isle of Man’s money laundering risk remains ‘medium high’ according to the latest version of the National Risk Assessment (NRA) for Money Laundering.

Published last week (11 March), the findings in the NRA are consistent with the previous 2020 assessment, highlighting that the international financial centre remains exposed to external risks including foreign predicate offences and complex multijurisdictional structures, the Isle of Man’s government said, adding that understanding and managing of these risks is essential.

The government also published the latest sectoral risk assessment for the trust and corporate services providers sector, which confirmed the money laundering risk for TCSPs also remains ‘medium high’, reflecting the sector’s international client base and use of complex structures.

However, the report acknowledged controls have been strengthened since 2020, including enhanced supervision by the IoM’s Financial Services Authority, thematic reviews and improved sector guidance.

Regulated firms are required by law to incorporate NRA findings into their internal risk assessments.

Justice and home affairs minister Jane Poole-Wilson MHK said: “Maintaining a stable risk profile in an increasingly complex global environment reflects the strength of our regulatory framework and the collective efforts across the Island to safeguard the integrity of our financial system.

“These assessments also provide important insight into one of our most economically significant sectors, the TCSP industry, highlighting both areas of resilience and where further focus will support continued high standards. Together, they help ensure the Isle of Man remains a well-regulated and responsible international finance centre.”