Anti-Money laundering legislation and Countering the Financing of Terrorism (AML/CFT)
All businesses that accept cash payments of 15,000 Euros or more, or the equivalent in any currency including sterling, or are of a designated type (see below for further information), are required to comply with legislation regarding the prevention of money laundering and terrorist financing further to the requirements of the Proceeds of Crime Act 2008 (POCA) and the Terrorism and Other Crime (Financial Restrictions) Act 2014.
The relevant secondary legislation was last updated under via the Anti-Money Laundering and Countering the Financing Terrorist Financing Code 2015 [SD 2015/0102], which came into operation on 1st April 2015, and the Money Laundering and Terrorist Financing (Online Gambling) Code 2013 [SD 0096/13], which came into operation on 1st May 2013. PDF copies of these Codes can be found in the column to the right.
The Anti-Money Laundering and Countering the Financing Terrorist Financing Code 2015 requires the Department to publish three lists. "List A" is a list specifying jurisdictions regarding which the Financial Action Task Force, (FATF) or a FATF-style regional body, has made a call on its members and other jurisdictions to apply countermeasures to protect the international financial system from the on-going and substantial risks of ML/FT emanating from the jurisdiction; "List B" is a list specifying jurisdictions with strategic AML/CFT deficiencies or those considered to pose a higher risk of ML/FT; and "List C" is a list specifying jurisdictions which are considered to operate laws equivalent to those of the Isle of Man. These lists can be found in a PDF, or PDFs, set out in the column on the right.
The types of businesses that are required to comply with the measure to prevent money laundering and terrorist financing, whether or not they accept cash of 15,000 Euros or more, are specified in Proceeds of Crime (Business in the Regulated Sector) Order 2015 [SD 2015/0073], which amends Schedule 4 of the Proceeds of Crime Act 2008.
The requirements of these Codes provide protection to the Isle of Man to prevent it from being utilised for money laundering purposes in relation to either terrorism or crime. The legislation also keeps the Island's regulatory mechanism in line with the best international models/practice and in compliance with the Financial Action Tasks Forces (FATF) recommendations.
The Designated Businesses (Registration & Oversight) Act 2015
Following comments from the IMF report in 2009, the Council of Ministers considered proposals put forward by the then Chief Secretary’s Office (now the Cabinet Office) to place responsibility on the Isle of Man Financial Services Authority (“the Authority") for the oversight of the adherence of certain businesses and professions (“Designated Businesses”) to the Island’s anti-money laundering and countering the financing of terrorism legislation (“AML/CFT legislation”).
The Designated Businesses (Registration and Oversight) Act 2015 (“the Act”) was passed in order to address these comments and came into force on 26 October 2015.
The Act does not make persons affected by its provisions licence holders of the Authority. The Authority’s role in licensing and supervising Financial Institutions is distinct and entirely separate from its role under this Act.
Designated businesses are registered and overseen by the Authority for AML/CFT compliance only –they retain their current status with the various bodies (if any) responsible for their wider business, competence or other matters, such as the Isle of Man Law Society, the ICAEW, ACCA, CIMA, the Office of Fair Trading etc.
Further information can be found on FSA Web Site.