The Isle of Man Financial Services Authority has published a midpoint report on its two-year programme for supervising anti-money laundering, countering the financing of terrorism and countering the financing of proliferation, known as AML/CFT/CFP. The report indicates a generally improving compliance picture and outlines the risk-based thematic reviews, inspections and outreach conducted during 2025/26. Supervisory resources remain concentrated on firms assessed as presenting high or medium-high financial crime risk, while lower-risk firms receive more thematic engagement and outreach. Year-one work covered estate agents, moneylenders, virtual asset service providers, sanctions, terrorist and proliferation financing, business risk assessments, and reporting and registers. The sanctions review found that all inspected firms had documented controls, but identified weaknesses in decision-making records, customer due diligence, screening and the treatment of sanctions risk in business risk assessments. Half of the inspected firms lacked an adequate Technology Risk Assessment. Findings and firm data will inform the AML/CFT Handbook, sector guidance, the National Risk Assessment and preparations for the 2026 MONEYVAL mutual evaluation. For 2026/27, the terrorist financing thematic review will continue for 12 to 18 months, with up to 15 inspections planned. The Authority also intends to issue a questionnaire to all Island firms in November 2026 to assess action taken since its 2023 foreign politically exposed persons report, alongside further business risk assessment and reporting and registers inspections, virtual asset service provider work and a deferred non-life insurance thematic review.

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