Isle of Man Financial Services Authority imposes GBP 33,850 civil penalty on Income Plus Services Limited for Level 2 AML CFT Code contraventions

The Isle of Man Financial Services Authority published a public statement imposing a civil penalty on Income Plus Services Limited (IPSL), a registered payroll agent, after an inspection and formal investigation identified multiple contraventions of the Anti-Money Laundering and Countering the Financing of Terrorism Code 2019. The breaches were assessed as meriting a higher Level 2 penalty under the Anti-Money Laundering and Countering the Financing of Terrorism (Civil Penalties) Regulations 2019. The penalty was set at GBP 48,356 and discounted by 30% to GBP 33,850 to reflect cooperation and early settlement. The findings included failures to establish, operate or maintain AML/CFT procedures and controls relating to business and customer risk assessments, customer screening, ongoing monitoring including transaction monitoring, source of funds checks for new clients, sanctions and politically exposed person screening, and monitoring and testing compliance, including an absence of annual reports required under paragraph 30(2) of the Code. The action followed a July 2023 supervisory meeting that identified significant gaps, a risk-based inspection in December 2023, and remediation completed within a timetable agreed with the Authority with support from an independent third-party professional.