Police in the island are continuing to investigate an island-based financial services firm over allegations of money laundering.

Wilton (IoM) Ltd had its licence revoked by the Financial Services Authority in January last year after ‘serious failings’ were identified.

Its founder and managing partner, Irishman Michael Tony Flanagan, who has a home on Belmont Hill in Douglas, was interviewed under caution by police financial investigators in November.

He was questioned in connection with an investigation into Wilton (IoM) regarding offences of conspiracy to commit money laundering, money laundering and failing to disclose under the Proceeds of Crime Act.

The inquiry is being led by the Proactive International Money Laundering Investigation Team.

Mr Flanagan insists that no charges have been brought, or allegations made against him

Founded in 1999, Wilton Group grew exponentially through a number of key acquisitions and had £2.2bn of funds under management by 2021.

It is now the focus of litigation in the UK, US and the Isle of Man relating to the collapse of its Hartley Pensions subsidiary, which has left 17,000 British pensioners in limbo.

Members of the Hartley Pensions Action Group protested outside London’s Royal Courts of Justice last month when Mr Flanagan gave evidence to the Insolvency and Companies Court.

The case is due to return to court on June 11 for closing statements.

Hartley Pensions, which had been acquired by the Wilton Group in 2015, was placed into administration in July 2022.

Regulator the Financial Conduct Authority has been carrying out an enforcement investigation into the company, having earlier imposed serious restrictions on it due to ‘serious operational, financial and regulatory issues’.

In an update in April, the joint administrators confirmed there had been unauthorised transfers from clients’ personal pensions before Hartley went into administration.

These had subsequently paid back but are the subject of civil litigation in the Isle of Man.

An interim receiver of Wilton (IoM)’s affairs, business and property was appointed by the high court in November 2023.

The company’s licence was revoked two months later by the FSA which said that the company was both cash flow and balance sheet insolvent and its two directors had provided ‘minimal assistance’ to the court-appointed interim receiver. Wilton (IoM) was subsequently placed into voluntary liquidation.

Giving evidence to the Insolvency and Companies Court last month, Mr Flanagan acknowledged: ‘I wholly admit there are multiple inquiries, and I am fully co-operating with every one of them.’

He insisted that his regulatory record of working in the financial services industry was ‘absolutely intact’.

An audit of Wilton (IoM) carried out by PWC in 2023 raised concerns about non-compliance with anti-money laundering legislation.

It highlighted a lack of scrutiny of transactions, leaving the company open to heightened money laundering risk and potentially not in a position to identify unusual or suspicious activity.

Among Wilton IoM’s clients were Isabel dos Santos, once described as Africa’s richest woman, who last year had sanctions including an asset freeze imposed on her by the UK government for alleged corruption.