The Isle of Man Government has published its first standalone Legal Persons and Arrangements National Risk Assessment (LPA NRA), forming part of the Island’s Financial Crime Strategy 2024-2026.

The assessment examines money laundering and terrorist financing risks linked to companies, trusts, foundations and partnerships operating in or through the Isle of Man. It evaluates national threats, vulnerabilities and mitigating measures, and sets out actions to further strengthen the Island’s financial crime framework.

The report identifies a high money laundering threat and a medium-low terrorist financing threat, driven largely by foreign predicate offences.

It highlights complex, multi-jurisdictional structures as a key risk driver and notes that legal persons and arrangements feature in a higher number of Suspicious Activity Reports and Mutual Legal Assistance Requests.

The Island’s national vulnerability is assessed as medium-high for money laundering and medium for terrorist financing, while recognising that strong mitigating controls are in place, including beneficial ownership information, the regulation of Trust and Corporate Service Providers (TCSPs), and effective inter-agency cooperation.

The NRA also recognises emerging risks, including the potential misuse of artificial intelligence, alongside opportunities for technology to strengthen detection.

The Minister for Justice and Home Affairs, Jane Poole-Wilson MHK, said: ‘Whilst our Island is a comparatively safe place, we will not tolerate those who seek to misuse our legal structures for criminal purposes.

‘This is our first standalone Legal Persons and Arrangements National Risk Assessment. It has been informed by extensive collaboration across government, regulators, law enforcement and industry, particularly the TCSP sector.

‘That partnership is essential to protecting the Island’s reputation and ensuring that legitimate business can continue to thrive within a strong and trusted regulatory environment. It also reinforces our shared commitment to international standards, transparency and an all-Island approach to tackling financial crime.

‘As a responsible jurisdiction, our message is clear: we will not tolerate those who seek to commit crime either on or through our Island.’

The full Legal Persons and Arrangements National Risk Assessment is available at counteringfinancialcrime.im.