Proliferation Financing thematic report published (Press Release)

A report published by the Isle of Man Financial Services Authority shows that most Island firms have a good understanding of Proliferation Financing (PF) and have enhanced their procedures and controls to mitigate PF risk.

The document, which is available to view online, highlights the findings of Phase 2 - onsite thematic inspections conducted by officers from the Authority's AML/CFT Supervision Division and Phase 3 - 2026 PF questionnaire reissue.

The thematic review was launched in January 2024 to assess how firms are meeting their AML/CFT Code obligations in relation to PF. Following analysis of firm data held by the Authority, including responses to the initial Phase 1 - PF questionnaire, seven firms from different sectors were selected for onsite inspections.

All seven inspected firms were found to have in place documented PF procedures and controls and related staff training, and while the Authority identified a number of contraventions, these were mainly isolated customer-specific matters rather than material deficiencies.

The concluding phase of the PF thematic saw the questionnaire being reissued in April 2026, enabling the Authority to compare the responses from 579 firms with those received during Phase 1 in 2024.

Findings demonstrate the progress being achieved by firms in respect of their compliance regimes, with an improved understanding of PF risks and typologies, more direct references to PF in Business Risks Assessments (BRA), and an uptick in staff training.

The Authority also noted a positive response to targeted PF engagement - including reports, videos, webinars and factsheets - with cross-agency communications triggering an update of firms' procedures and controls.

As well as informing future PF guidance and outreach, the thematic report review builds on the recent publication of the Isle of Man's first standalone PF National Risk Assessment, which rated the Island's PF risk as Medium-Low.

Eleanor Stephenson, Manager - AML/CFT Division said: 'The Authority is grateful to all the firms that took part in the PF thematic project. The excellent level of cooperation has provided further insight into industry's approach to compliance with the AML/CFT Code 2019 in respect of PF risk.'

She added: 'Firms are expected to apply the same standard of rigour to the assessment of proliferation financing risk as they do for money laundering and terrorist financing. We would encourage people to read the PF report and consider any action necessary to ensure their firm's processes and procedures are effective, up-to-date and properly documented.'