The Isle of Man is stepping up its fight against financing terrorism as it looks to avoid damaging its economic reputation.

A recent assessment of the island’s financial sector deemed the island at medium-low risk of being involved in financing terrorism.

The Manx Government has published its first standalone Terrorist Financing (TF) National Risk Assessment (NRA), which it says is a significant step in strengthening the Island’s defences against terrorist financing.

The TF NRA builds upon the findings of the 2015 and 2020 Money Laundering and Terrorist Financing NRAs and has analysed the risks with the Isle of Man as an international financial centre.

It is a key component of the Island’s broader strategy to meet the Financial Action Task Force (FATF) recommendations on anti-money laundering, countering the financing of terrorism.

The government’s main priority is to ensure the island prevents, detects and disrupts criminal activity on an international scale.

If the island cannot demonstrate that it meets the standards expected, the jurisdiction could referred to the ‘grey-listing’ process. This outcome would have a significant negative impact on the economy and damage our international reputation and the ability to do business.

Minister for Justice and Home Affairs Jane Poole-Wilson MHK said: ‘This assessment is a vital tool in our ongoing efforts to protect the Isle of Man’s financial system and uphold our international obligations.

‘It reflects the depth of collaboration across government, regulators, and industry, and highlights both our strengths and the areas where we must continue to build capacity and awareness.

‘We are committed to ensuring that the Island remains a secure and responsible jurisdiction.’

The assessment, which began in April 2024, involved contributions from 48 local experts, industry representatives, and international partners including the UK Home Office and the World Bank.

It concludes that the Isle of Man faces a medium-low overall risk of being used as a conduit for terrorist financing, with the highest risk identified in the area of transit TF — the potential for funds to pass through the Island’s financial system en route to other jurisdictions.

The overall rating remains the same as the last assessment, conducted in 2020, but the new report provides further assurance of the rating using more detailed data, information and analysis.

The FATF is an inter-governmental body that sets standards and promotes effective measures for combating money laundering, terrorist financing and other related threats to the international financial system.

The FATF-style regional body for the Isle of Man is MONEYVAL with the Isle of Man's efforts in combatting financial crime subject to an evaluation by MONEYVAL in October next year.

Following the publication of the TF NRA, businesses will be provided help to understand and apply the key findings.

In June, Isle of Man Constabulary’s Chief Constable Russ Foster revealed no fewer than 10 active police investigations currently under way into international money laundering, But while it involves serious organised crime there is no indication the financing of terrorism is involved.