Island company fined for anti-money laundering regulatory breaches

FSA found IPSL had considerable gaps in control framework and understanding of risk

An Island-based company has been fined almost £50,000 after being found to have breached anti-money laundering regulations.

The Isle of Man Financial Services Authority handed IPSL a civil penalty of £48,356, discounted by 30 percent.

The regulator identified a number of contraventions relating to its anti-money laundering and countering the financial of terrorism code during an inspection of IPSL.

A meeting in July 2023 found there were considerable gaps in the firm's control framework and overall understanding of risk.

The FSA says the firm did not consider all risk factors, didn't demonstrate it had adequate procedures and controls for new relationships and undertook no ongoing monitoring or screening of customers for exposure to sanctions.

IPSL also failed to establish, record, operate or maintain procedures and controls relating to assessing risk, including monitoring transactions and testing compliance with legislation.

The authority found the seriousness of the breaches merit a fine being imposed in the higher penalty bracket, but a 30 percent discount was applied to reflect that the company co-operated with the authority.

The FSA says it's essential firms stay up to date with the evolving anti-money laundering framework, adding that it's committed to working with industry to enhance the Isle of Man's ability to meet international standards.