AML/CFT Framework legislation updates

Overview

This Consultation Paper (‘the Paper’) is issued by the Isle of Man Financial Services Authority (‘the Authority’) in conjunction with the Department of Home Affairs (‘DHA’) and the Isle of Man Treasury. The Authority is the regulatory body for financial services in the Isle of Man, and the oversight body for Designated Businesses (‘Designated Businesses’) in relation to compliance with Anti-Money Laundering (‘AML’) and Countering the Financing of Terrorism (‘CFT’) obligations.

The purpose of the consultation is to obtain views regarding the proposed amendments to Schedule 1 (‘Schedule 1’) to the Designated Businesses (Registration and Oversight) Act 2015 (‘DBROA15’) and to Schedule 4 (‘Schedule 4’) to the Proceeds of Crime Act 2008 (‘POCA08’). The purpose of these amendments is to ensure there is consistency between both Schedule 1 and Schedule 4 and to improve usability of both schedules, as well as bringing the terminology in line with international standards where required.

There is only one scope change whereby Schedule 1 to the DBROA15 includes the proposed addition of a new designated business activity ‘Administering or managing money on behalf of another person’. This may bring new businesses into scope of the DBROA15. If you believe your business will be affected by this proposed change please contact the Authority at your earliest convenience to discuss this further.

The content of this Paper is relevant to all regulated entities and Designated Businesses. Additionally, the sections relating to Schedule 4 to the POCA08 may also be relevant to all persons supervised in relation to AML/CFT by the Isle of Man Gambling Supervision Commission (‘GSC’).

It is pertinent to mention that further amendments in respect of Schedule 1 to the DBROA15 are being proposed as part of the Financial Services (Miscellaneous Provisions) Bill, which is currently being drafted. These additional amendment proposals will be consulted upon separately and will not in any way form part of this consultation.

Confidentiality and Data Protection

The information you send may be published in full or in a summary of responses. All information in responses, including personal data, may be subject to publication or disclosure in accordance with the access to information regimes (these are primarily the Freedom of Information Act 2015 and the Data Protection Act 2018) with which the Authority is obliged to comply.

The Authority is registered with the Information Commissioner as a data controller under Isle of Man data protection legislation. It collects and processes personal data to carry out its functions under relevant legislation and may share personal data with other parties where there is a legal basis for doing so. Further information on how the Authority collects and processes personal data can be found in the Privacy Policy on the Authority’s website.

If you have a query in relation to how this consultation has been carried out, please contact the Authority’s AML/CFT Division by email at aml@iomfsa.im or by telephone on +44 1624 646000.

Responding to this Consultation Paper

This Consultation Paper has been published on the Authority's website and on the Isle of Man Government's Engagement Hub ('the hub' - this site). A list of specific representative groups to which this Consultation Paper has been sent is shown below: 

• Alliance of Isle of Man Compliance Professionals
• Association of Chartered Certificated Accountants (as oversight body)
• Association of Corporate Service Providers
• Chartered Institute for Securities and Investment (Isle of Man branch)
• The Department for Enterprise
• Digital Isle of Man
• Finance Isle of Man
• Financial Intelligence Unit
• Financial Planners & Insurance Brokers Association
• Gambling Supervision Commission
• Institute of Certified Bookkeepers (as oversight body)
• Institute of Chartered Accountants In England and Wales (as oversight body)
• Institute of Directors (Isle of Man branch)
• Institute of Financial Accountants (as oversight body)
• International Association of Bookkeepers (as oversight body)
• Isle of Man Wealth & Fund Services Association
• Association of Chartered Certified Accountants (Isle of Man branch)
• Isle of Man Association of Pension Scheme Providers
• Isle of Man Bankers Association
• Isle of Man Captive Association
• Isle of Man Chamber of Commerce
• Insurance Institute of the Isle of Man
• Isle of Man Law Society (as oversight body)
• Isle of Man Post Office
• Isle of Man Society of Chartered Accountants
• Isle of Man Insurance Association
• Society of Trust and Estate Practitioners (Isle of Man branch)

The closing date for comments is 15 April 2024.

Before you respond, please ensure that you have read the Consultation Paper. You can respond to this Consultation Paper online by clicking on the 'Online Survey' link below. Responses made outside of the ‘Online Survey’ can be submitted by email to aml@iomfsa.im and, if in an attachment, preferably in an extractible format e.g. Microsoft Word document. Alternatively, you can submit responses by post to:

Ashley Whyte – Senior Manager, AML/CFT Division
Isle of Man Financial Services Authority
PO Box 58,
Finch Hill House,
Bucks Road,
Douglas,
Isle of Man,
IM99 1DT