The Isle of Man Government is reaffirming its commitment to staying at the forefront of the global battle against money laundering, terrorist financing and financing the proliferation of weapons of mass destruction with the release of the Financial Crime Strategy 2024-26.
The comprehensive document outlines the Island’s current standing and recent policy developments, as well as addressing the constantly evolving threats faced by governments worldwide.
Chief Minister Alfred Cannan MHK said: “I am proud to present the fourth Financial Crime Strategy for the Isle of Man, marking a significant milestone in our ongoing commitment to combatting money laundering and terrorist and proliferation financing. This strategy, adopted as a political priority by the Isle of Man Council of Ministers, underscores our unwavering dedication to maintaining the highest standards in the international arena.
“Importantly, our jurisdiction remains open and welcoming to all international business sectors. As we strive to provide the best circumstances for businesses to thrive, we are mindful not to be complacent about the need to regulate, detect and enforce against financial crime. Our stable, well-regulated environment, coupled with a history of democratic rule and the rule of law, positions the Isle of Man as a key player in the global fight against financial crime.
“This updated strategy emphasises the crucial role of collaboration between the Government, businesses, regulators and law enforcement agencies. By working together, and using the tools at our disposal, we aim to safeguard our Island from the insidious effects of financial crime. We believe that this strategy, with its clear guidance and comprehensive approach, will contribute significantly to achieving this collective goal.”
Highlighting the tangible impact of financial crime, the document emphasises that it is not victimless. While individual offences may occur discreetly, money laundering facilitates crimes that generate illicit funds, adversely affecting individuals and communities.
To achieve its mission of an all-Island approach to tackling financial crime, the Isle of Man sets out the following aims:
- Public-Private Collaboration: Public sector and industry will work together to meet international standards.
- Best Practices: Actions will be informed and driven by best practices and standards, both domestically and internationally.
- Global Participation: The Island will actively participate in the global fight against financial crime.
- Resource Allocation: All stakeholders will have the necessary resources to identify and respond to ML/TF/PF threats.
These aims will be realised through the pursuit of the following Strategic Objectives:
- International Standards: Continuing to meet the highest international standards, adapting approaches in line with changes or developments.
- Risk-Based Approach: Using a risk-based approach to identify and mitigate risks, coordinating appropriate actions and resources.
- Knowledge Sharing: Proactively sharing and seeking knowledge and expertise to ensure responses are underpinned by best practices.
- Empowered Authorities: Ensuring supervisory authorities are empowered and appropriately resourced to inspect, detect, investigate, and sanction instances of non-compliance.
- Legal Empowerment: Empowering law enforcement and justice systems to detect, investigate, prosecute, and appropriately sentence offenders.
- Threat Understanding: Fully understanding immediate, emerging, and ongoing threats posed by financial crime through comprehensive analysis.
- Vigilance Against Terrorism: Remaining vigilant and responsive to threats arising from terrorist financing and the proliferation of weapons of mass destruction.
- Continuous Improvement: Embedding a cycle of continuous improvement across the Isle of Man to address financial crime.
This work builds on the foundations laid by the Isle of Man’s first National Risk Assessment of Money Laundering and Terrorist Financing, published in 2016, the subsequent National Risk Assessment published in 2020 and the Financial Crime Strategies of 2017-2020 and 2021-2023, in response to recommendations contained within the MONEYVAL Mutual Evaluation of the IoM.
The Financial Crime Strategy 2021-2023 Review of Outcomes, which will be published in January 2024, looks at the recommended actions from the Financial Crime Strategy 2021–2023, the outcomes achieved against each one and ongoing actions that will be carried forward into the new Financial Crime Strategy 2024–2026.
