Anti-money laundering legislation

Since September 1st, 2007, the anti-money laundering requirements in the Isle of Man have been extended to all businesses that accept cash payments of 15,000 euros or more - or the equivalent in any currency including sterling.

In addition the types of businesses that are required to comply with the full anti-money laundering requirements, whether or not they accept cash of 15,000 euros or more was also extended from September 1st, 2007. The list of all such businesses is contained in Schedule 1 to the Anti-Money Laundering Code 2007 (712/07).

The new requirements were introduced in 2007 to provide enhanced protection to the Isle of Man and prevent it from being utilised for money laundering purposes in relation to either terrorism or crime. The legislation will also keep the Island’s regulatory mechanism in line with the best international models/practice and in compliance with the Financial Action Tasks Forces recommendations.

The Department of Home Affairs has gone to considerable efforts to ensure that individuals working in businesses such as car dealerships, jewellers and auction houses are aware of their obligations. For example free seminars, news releases, media advertising and information at ports of entry to the Island have been arranged as part of an ongoing publicity campaign co-ordinated by the Department, Financial Supervision Commission and Isle of Man Customs and Excise Division. Thousands of information leaflets outlining the anti-money laundering legislation have also been distributed.

An anti-money laundering instruction manual, intended as a one-stop guide for Designated Non-Financial Businesses and Professionals (DNFBPs), has been produced to highlight the requirements of the Anti-Money Laundering Code 2007.

The Manual includes the following documentation - copies of which can be found on this website - a copy of the Department’s August 2008 letter to DNFBP; a registration/questionnaire; guidance notes; a flow chart to explain how the supervision process works; a suspicious transactions form; the Anti-Money Laundering Code 2007 (712/07) as amended.

Completing the registration/questionnaire will help to identify to what extent companies/businesses are required to comply with the anti-money laundering provisions. This document must be completed and returned to the Department by 5pm on September 26th, 2008. The other purpose of the registration/questionnaire is to assist the Department in its role of overseeing the compliance by DNFBPs in relation to compliance with the Code and to provide a register of DNFBPs that do or do not accept cash payments of 15,000 euros or more.

The Department’s expectation is that there will be few businesses that will fall within category 24 of Schedule 1 to the Code which accept cash payments of 15,000 euros or more, but it is essential where this is the case that full compliance with the Code is undertaken - including appointing a Money Laundering Reporting Officer (MLRO).

Compliance with additional requirements of the Anti-Money Laundering Code have, as previously mentioned, been in force since September 2007. Therefore, the current aim is to add to the publicity already undertaken, to directly communicate with DNFBPs, to provide a guide for them in relation to their responsibilities and to assist them introduce practices that will avoid breaches of the code occurring, which may lead to prosecution.

It is recognised that the overseeing of DNFBPs is likely to require further development, but in relation to the actual degree of risk so it is not over burdensome on businesses or the Department, a review will be undertaken in November 2008.

The most important initial requirement in relation to this matter is to complete the registration/questionnaire and return it to the Department and to ensure all DNFBPs are in compliance with the anti-money laundering legal requirements by using the manual or seeking legal advice if this is deemed necessary.

The Department is most grateful to all DNFBPs for their co-operation on this important matter which is essential to ensure the Island is protected from those who would otherwise use the Isle of Man for laundering of funds for criminal or terrorist related purposes and to protect the Island’s international reputation.

* For further information about limits on carrying cash into or off the Isle of Man, please click on the following link: http://www.gov.im/lib/docs/treasury/customs/notice9011carryingcashinando.pdf

* For more advice about declaring cash on entering or leaving the Isle of Man, please click on the following link: http://www.gov.im/treasury/ViewNews.gov?page=lib/news/treasury/customs/declarationofcas.xml&menuid=11570