The Isle of Man Financial Services Authority has published proposed amendments to the Island’s anti-money laundering and countering the financing of terrorism framework for Virtual Asset Service Providers. Working with the Department of Home Affairs, it plans to update the Travel Rule (Transfer of Virtual Assets) Code 2024 by revising paragraph 7 on unhosted wallet transfers so the measure is applied more proportionately and allows VASPs to use a more risk-based approach. In parallel, the Authority is working with the Treasury to bring the Travel Rule Code 2024 within scope of the AML/CFT (Civil Penalties) Regulations 2019. The unhosted wallet change is to be made through the Travel Rule (Transfer of Virtual Assets) (Amendment) Code 2026, which is being laid before the March sitting of Tynwald, while the civil penalties change would be made through the AML/CFT (Civil Penalties) (Travel Rule) (Amendment) Regulations 2026, subject to Tynwald approval. The Authority said the revisions follow extensive consultation and collaboration with the Island’s VASP sector and are intended to keep the regime appropriate while continuing to meet international standards.
Isle of Man Financial Services Authority 2026-03-10
Isle of Man Financial Services Authority proposes risk based Travel Rule changes for unhosted wallet transfers and civil penalties extension
The Isle of Man Financial Services Authority proposes amendments to its anti-money laundering and counter-terrorism framework for Virtual Asset Service Providers. Key changes include revising the Travel Rule (Transfer of Virtual Assets) Code 2024 for more proportional measures and adopting a risk-based approach for unhosted wallet transfers. Subject to Tynwald approval, the amendments aim to align with international standards while maintaining regulatory appropriateness.