The Isle of Man Financial Services Authority has launched Phase 3 of its sanctions thematic project to assess firms’ anti-money laundering and countering the financing of terrorism (AML/CFT) compliance in relation to sanctions. After completing Phase 2, which began in January 2024 and focused on banks and money transmission service licence holders, the next phase will be risk-driven and extend to firms in other sectors as part of the Authority’s 2025/26 supervisory engagement plan. Phase 3 will be led by the AML/CFT Supervision Division, with support from other supervisory divisions where appropriate. Firms will receive requests for relevant documentation at the same time they are notified of inclusion, with notifications and firm participation staged over a period of time given the scale of the work. The project will test how relevant persons are meeting their responsibilities under the Anti-Money Laundering and Countering the Financing of Terrorism Code 2019, using data submitted via STRIX as part of the annual return. A Phase 2 report is due to be published in due course, and further reports are planned following completion of Phase 3.