Thematic project to focus on countering the financing of terrorism (Press Release)

The Isle of Man Financial Services Authority ("the Authority") is preparing to launch a thematic review focusing on compliance in relation to countering the financing of terrorism.

The project will be led by the AML/CFT Supervision Division, working in conjunction with colleagues from other supervisory divisions where appropriate.

On-site inspections are scheduled to start in April, with work continuing over the next 12-18 months to assess compliance with specific elements of the Anti-Money Laundering and Countering the Financing of Terrorism Code 2019 ("the Code").

The approach to this topical thematic has been updated from the proposal set out in the AML/CFT Supervisory Priorities 2025-2027 document. The Authority is seeking to reduce the workload for industry by basing its inspection plan for this review on existing data rather than requesting additional information via a questionnaire.

The nature and scale of the project means that notifications, and the involvement of selected firms, will be staged over time. Requests for documentation to be provided to the Authority will be sent to relevant licenceholders and designated businesses in due course.

Further assistance and guidance is available on the Authority's AML/CFT webpage, while useful documents include, but are not limited to, the AML/CFT Handbook, the Island's latest Terrorist Financing National Risk Assessment, Customs & Immigration Sanctions Guidance and the Isle of Man Financial Crime Strategy 2024-2026.

Eleanor Stephenson, Manager - AML/CFT Supervision Division, said: 'The Island is committed to fulfilling its international obligations regarding compliance with terrorism-related sanctions regimes that seek to deny access to the financial system for terrorist groups and terrorist financing. The importance of awareness and controls relating to the financing of terrorism is long established in AML/CFT legislation, while the publication of the Island's updated TF NRA highlights the transit risk posed by funds associated with terrorists or terrorist organisations flowing through the Island's financial system.'

She added: 'The thematic presents an opportunity to test and evidence how relevant persons are meeting CFT challenges and mitigating TF risks. In addition to increased engagement with firms, we hope to identify and highlight some best practice during the project that can be shared and fed back with industry. The project will add to our wider understanding of risk, building on the work the Authority has recently undertaken through the proliferation financing and sanctions thematic projects.'