Department of Home Affairs

Legislation

This page aims to highlight forthcoming or newly passed legislation implemented by the Department of Home Affairs. Copies of new legislation can be found below.

Important changes to Anti-Money Laundering legislation - Criminal Justice (Money Laundering) Code 2007

Any businesses on the Isle of Man which accept cash payments of the equivalent of 15,000 euros or more for any goods should be aware of changes to this legislation.

The ML Code came into effect on 1st September 2007 and was laid before Tynwald on 16th October 2007, with a minor amendment made on 31st October 2007. The ML Code replaced the previous Anti-Money Laundering Code 1998 and brought in changes to anti-money laundering and counter terrorist financing requirements.

Where previous legislation had focused on the financial services sector, the ML Code brings additional businesses within its remit. These changes have been made in order to bring the Isle of Man in line with international standards. Further information on the international standards can be found on the Financial Action Task Force’s website at www.fatf-gafi.org.

A full copy of the ML Code can be found at the bottom of this page. Schedule 1 of the ML Code lists all the relevant business affected. One particular entry in Schedule 1 has the potential to affect every business on the Isle of Man and we would therefore like to draw it to your attention. Paragraph 24 of Schedule 1 states:

“The business of dealing in goods of any description (including dealing as an auctioneer) whenever a transaction involves accepting a total cash payment of euro 15,000 or more.”

This means that any business on the Isle of Man which accepts €15,000 or its equivalent value in cash must comply with the anti-money laundering and counter terrorist financing obligations outlined in the ML Code. Payments made using other means such as by cheques, by debit or credit card, are not subject to the requirements of the ML Code. This legislation does not affect private arrangements that are not by way of business.

Under the ML Code, certain actions must be taken by businesses accepting cash payments for goods above the €15,000 threshold which include:

Identifying and verifying the identity of the applicant for business / customer;
Obtaining information on the purposes and intended nature of the business relationship;
Conducting ongoing due diligence on the business relationship and transactions;
Maintaining records regarding the customer’s identity for 5 years following the end of the business relationship;
Maintaining records of transactions for 5 years from the date the transaction is completed;
Maintaining registers of money laundering enquiries made by law enforcement or other authorities;
Appoint a Money Laundering Reporting Officer;
Establish, maintain and operate written internal reporting procedures in respect of suspicious transactions;
Screen new employees; and
Train staff in respect of money laundering requirements.

It is important to note that if you accept payment in cash above €15,000 or equivalent, and you do not comply with the requirements of the ML Code this is an offence and you may be liable to imprisonment or to a fine, or to both.

Should you have any questions about the ML Code and its requirements please contact the Financial Supervision Commission on 689300.

Downloadable Documents