Island's banking sector gets medium-high money laundering risk rating

Government assessment identifies 'number of emerging threats'

A money laundering risk assessment of the Island's banking sector has 'identified a number of emerging threats'.

It's determined, while there are strong controls in place, there is a medium-to-high risk rating, overall.

Emerging threats include cyber-enabled crime, fraud and the misuse of virtual assets.

The report offers advice including enhancing collaboration to reduce fraud risk and improving data systems.

This, it suggests, would mean a better understanding of financial flows.

The overall effect of all of this means a medium-high overall money laundering risk rating for the Island.

More scrutiny of the Manx Financial Sector is in the pipeline.

Government says the banking sector report is the first of a number of sectoral reports due for release this year and next.  

Before the end of the year, we will see reports covering the Gambling, Insurance, and Trust and Corporate Service Providers (TCSPs) sectors.

And in a year's time, the Moneyval evaluation.  

It adds: 'Sector and topic-based assessments will feed into the overarching NRA as part of a ‘ground up’ approach to establishing a detailed picture of the risks facing the Isle of Man.  Work is also well advanced on several other reports, including the Proliferation Financing (PF), Money Laundering (ML), Virtual Asset Service Providers (VASPs) and Legal Persons and Arrangements (LPA) risk assessments.'

Jane Poole-Wilson, Minister for Justice and Home Affairs and AML/CFT Lead for the Isle of Man Government, says: 'The banking sector report provides valuable insights to help the sector and authorities continue to adapt and strengthen our defences against financial crime. I would like to personally thank colleagues from the sector who participated in its development. 

'The NRA process relies on a considerable volume of data that needs to be collected and analysed for the risk assessments to be as robust as possible. I appreciate the time and effort that has been put in to produce a detailed report backed by good quality data.

'The NRA will have a significant bearing on the Island’s MONEYVAL mutual evaluation in October 2026. We continue to work collaboratively with businesses to enhance understanding and ensure they are well prepared to communicate how their internal compliance regimes reflect the sectoral and national risk assessments.'

You can find a link to the report via HERE.