The Isle of Man Government has published its updated Insurance Sector Money Laundering Risk Assessment, reaffirming the island’s commitment to maintaining an effective anti-money laundering, countering the financing of terrorism and proliferation (AML/CFT/CPF) regime.

The island will next be evaluated by MONEYVAL, against the international standards set by the Financial Action Task Force, later this year.

A key part of this assessment will be evidencing that industry and Government have a good understanding of the money laundering, terrorist financing and proliferation financing risk faced by the jurisdiction and the controls in place to mitigate this risk.

The insurance industry is the largest financial services sector in the island, contributing 17% of national income and employing around 3,000 people.

This updated assessment builds upon the 2020 National Risk Assessment and confirms that overall risk levels remain unchanged, with the sector assessed as medium risk for money laundering overall. The life insurance sector continues to carry a medium risk, while the non-life sector is assessed as medium-low, and general insurance intermediation as low risk.

Key findings include:

- The sector remains mature, well-regulated, and internationally focused, with more than £88 billion in life insurance funds and £4.8 billion in non-life funds under management.

- Inherent vulnerabilities relate to the international nature of life insurance business, use of legal persons and arrangements, and exposure to politically exposed persons (PEPs), although these are mitigated by strong AML controls.

- No significant changes have been identified since the 2020 assessment, reflecting the sector’s continued commitment to robust AML/CFT/CPF standards.

- Recommendations include further development of typologies, improvements in data quality, and enhanced outreach to the non-life sector.

Minister of Justice and Home Affairs Jane Poole-Wilson said: ‘This updated assessment provides clarity and assurance to industry and demonstrates our ongoing commitment to meeting global standards in combating financial crime.’

For further details and to access the full report visit https://counteringfinancialcrime.im