The Isle of Man financial regulator is taking action against anti-money laundering and terrorist financing with new guidance rules aimed at “avoiding a tick-box approach” to assessing the risk of customer involvement in such activities.
The recommendations form part of the latest guidance published by the Isle of Man Financial Services Authority (IoMFSA) as part of its Anti-Money Laundering and Countering the Financing of Terrorism handbook.
Examples of risk factors to be taken into account include:
- the type of customer – with higher attention being paid to politically exposed people, presenting a higher risk for potential involvement in bribery and corruption;
- the nature, scale, complexity, and geographical location of the customer’s personal and business activities;
- the extent to which the products and services they are providing to their clients are vulnerable to money laundering or terrorist financing abuse (with the arms trade referenced as a textbook case); and
- the jurisdictions in which customers reside, are located or operate their business.
[Source: International Adviser – Eugenio Montesano – 12th July 2017]