Isle of Man Ordered to Beef Up Money Laundering, Terrorism Finance Checks

The Isle of Man is a well-known tax haven (otherwise known as an “international financial center”), with its financial services sector (banking, insurance, other finance and business services, legal and accounting services, and corporate services) accounting for 37.8 percent of its gross domestic product.

However, the latest report from the Council of Europe’s expert committee on money laundering and the financing of terrorism (MONEYVAL) has raised “some concern over so-called ‘beneficial ownership’ rules — in other words, which individuals actually benefit from owning certain companies or trusts.”

​The report said there is “not enough understanding” of the risks involved when financial institutions work with intermediaries, and where risk assessment information is passed on through “information chains.”

“There are issues with the [Isle of Man] Financial Intelligence Unit (FIU) because, for a very long time, the way it was structured, it was not effective. The FIU was not doing its job properly, basically, because it lagged expertise, it was not focusing on the real money-laundering cases,” Michael Stellini from MONEYVAL told Sputnik.


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