Experts from Europe have examined the Isle of Man’s legal system for tackling money laundering and the financing of terrorism.

And they have good and bad news for us.

First the good news.

The committee on money laundering and the financing of terrorism highlights the good coordination of policies related to money laundering and the financing of terrorism in the island.

It says that ’significant reforms’ have already been introduced and further improvements are expected.

They conclude that the authorities have a ’thorough understanding’ of the Isle of Man’s institutional and legal vulnerabilities in these areas, as well as those sectors which are most at risk.

Now the bad news.

The report notes some concern over so-called ’beneficial ownership’ rules - in other words, which individuals actually benefit from owning certain companies or trusts.

It adds there is ’not enough understanding’ of the risks involved when financial institutions work with intermediaries, and where risk assessment information is passed on through ’information chains’.

The number of customers considered ’higher risk’ also seems to be relatively low given the type of business carried out in or from the Isle of Man.

Furthermore, money laundering convictions in the island are ’rather limited’ in relation to its risk profile and the overall value of confiscations remains ’extremely low’.

The investigators conclude: ’Many aspects of financial intelligence work need to be improved, although major reforms have already begun.’

The Isle of Man government says it is committed to introducing a database on beneficial ownership.

{http://www.iomtoday.co.im/news/isle-of-man-news/isle-of-man-bowing-to-pressure-to-set-up-beneficial-ownership-database-1-8224906|Read our story about that here.}

The Council of Europe. which was founded in 1949 in London, is not related to the European Union. Brexit would have no effect on the way it works or its future.