Isle of Man

Sanctions

No

FATF AML Deficient List

No

Higher Risk

Offshore Finance Centre

Medium Risk

US Dept of State Money Laundering assessment 

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ANTI-MONEY LAUNDERING

 

FATF Status

The Isle of Man is not on the FATF List of Countries that have been identified as having strategic AML deficiencies

 

Compliance with FATF Recommendations

The last follow-up Mutual Evaluation Report relating to the implementation of anti-money laundering and counter-terrorist financing standards in The Isle of Man was undertaken in 2019. According to that Evaluation, the Isle of Man was deemed Compliant for 15 and Largely Compliant for 21 of the FATF 40 Recommendations. It was deemed Highly Effective for 0 and Substantially Effective for 2 of the 11 Effectiveness  & Technical Compliance ratings.

 

US Department of State Money Laundering assessment (INCSR)

 

The Isle of Man was deemed a Jurisdiction of Primary Concern by the US Department of State 2016 International Narcotics Control Strategy Report (INCSR) but has not been included since. Key Findings from the last report are as follows: -

Isle of Man (IOM) is a British crown dependency, and while it has its own parliament, government, and laws, the UK remains responsible for its defense and international representation. Offshore banking, manufacturing, and tourism are key sectors of the economy, and the government has actively encouraged the diversification of its economy, offering incentives to high-technology companies and financial institutions that locate on the island. Consequently, it now hosts a wide range of sectors including aviation and maritime services, clean-tech and bio-tech, creative industries, e-business and e-gaming, high-tech manufacturing and tourism.

Its large and sophisticated financial center is potentially vulnerable to money laundering. Most of the illicit funds in the IOM are from fraud schemes and narcotics trafficking in other jurisdictions, including the UK. Predicate offenses to charge money laundering are minimal within the jurisdiction; however, there is concern over value-added tax crimes and the growing risk of cybercrime in its various forms, including identity theft and internet abuse.

 

SANCTIONS

There are no international sanctions currently in force against this country.

 

 

BRIBERY & CORRUPTION

Rating                                                                           (100-Good / 0-Bad)

Transparency International Corruption Index                           N/A

World Governance Indicator – Control of Corruption             N/A

 

ECONOMY

Financial services, manufacturing, and tourism are key sectors of the economy. The government offers low taxes and other incentives to high-technology companies and financial institutions to locate on the island; this has paid off in expanding employment opportunities in high-income industries. As a result, agriculture and fishing, once the mainstays of the economy, have declined in their contributions to GDP. The Isle of Man also attracts online gambling sites and the film industry. Online gambling sites provided about 10% of the islands income in 2014. The Isle of Man enjoys free access to EU markets and trade is mostly with the UK. In October 2014, the Isle of Man signed an OECD agreement to automatically exchange some financial account information to limit tax avoidance and evasion.

 

Agriculture - products:

cereals, vegetables; cattle, sheep, pigs, poultry

Industries:

financial services, light manufacturing, tourism

Exports - commodities:

tweeds, herring, processed shellfish, beef, lamb

Imports - commodities:

timber, fertilizers, fish

 

Country Links
Isle of Man Financial Intelligence Unit (FCU-IOM)
Financial Supervision Commission
Other Useful Links
FATF
US State Department
Transparency International
World Bank
CIA World Factbook

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