New legislation came into force this week that is designed to strengthen the Isle of Man’s reputation as a responsible and well-regulated international business centre.

Royal assent was announced at the June sitting of Tynwald for the Anti-Money Laundering and Other Financial Crime (Miscellaneous Amendments) Act 2018.

The new measures concern compliance with global standards on anti-money laundering and countering the financing of terrorism.

The Act also responds to the recommendations made by MONEYVAL to enhance the regulatory framework and further protect the Isle of Man from financial crime.

The island’s MONEYVAL assessment was undertaken in 2016.

That highlighted failings and listed a series of recommended actions that should be prioritised.

It said the Manx authorities should collect and maintain statistics on outgoing and incoming flows of funds in the financial sector.

Moneyval’s inspectors concluded that the FCU needed to do more to investigate cases where the money being laundered was generated in another jurisdiction.

And they said that the newly-created stand-alone Financial Intelligance Unit should be more proactive in generating intelligence.

Part of the new updated legislation enables the introduction of new Codes for foreign trustees and unregulated trustees who are resident in the Isle of Man.

There are additional record-keeping requirements for Foundations and changes that clarify the powers of the Companies Registrar to examine and investigate relevant documents filed with the Registry.

The Act includes a higher level of financial sanctions for failing to grant law enforcement authorities timely access to information. It also makes it clear that where parts of a dishonesty offence such as theft or forgery are committed overseas, the cases can be prosecuted in a Manx court.

The legislation was progressed through the House of Keys by Clare Bettison MHK, member for the Department of Home Affairs, following a public consultation launched in December.

Chief Minister Howard Quayle MHK said: ’The Isle of Man takes its responsibilities as an international business centre very seriously. We maintain a zero-tolerance stance in respect of money laundering and the financing of terrorism. This legislation is further evidence of the commitment outlined in the Programme for Government to make the changes recommended by MONEYVAL.’

He added: ’The Isle of Man has a reputation for delivering on its international commitments and the Act underlines our desire to be part of the solution to tackling serious and organised financial crime.’

MONEYVAL is the term by which, both commonly and officially, the Committee of Experts on the Evaluation of Anti-Money Laundering Measures and the Financing of Terrorism is known. Moneyval a monitoring body of the Council of Europe.

The Council of Europe is not a European Union institution