Isle of Man Publishes Updated Insurance Sector Money Laundering Risk Assessment

The Isle of Man Government has published its updated Insurance Sector Money Laundering Risk Assessment, reaffirming the Island’s commitment to maintaining an effective anti-money laundering, countering the financing of terrorism and proliferation (AML/CFT/CPF) regime and demonstrating compliance with international standards. 

The Isle of Man will next be evaluated by MONEYVAL, against the international standards set by the Financial Action Task Force, in 2026.

A key part of this assessment will be evidencing that industry and Government have a good understanding of the money laundering, terrorist financing and proliferation financing risk faced by the jurisdiction and the controls in place to mitigate this risk. 

The insurance industry is the largest financial services sector in the Isle of Man, contributing 17% of national income and employing around 3,000 people.

This updated assessment builds upon the 2020 National Risk Assessment and confirms that overall risk levels remain unchanged, with the sector assessed as medium risk for money laundering overall. The life insurance sector continues to carry a medium risk, while the non-life sector is assessed as medium-low, and general insurance intermediation as low risk. 

Key findings include: 

• The sector remains mature, well-regulated, and internationally focused, with over £88 billion in life insurance funds and £4.8 billion in non-life funds under management. 

• Inherent vulnerabilities relate to the international nature of life insurance business, use of legal persons and arrangements, and exposure to politically exposed persons (PEPs), although these are mitigated by strong AML controls. 

• No significant changes have been identified since the 2020 assessment, reflecting the sector’s continued commitment to robust AML/CFT/CPF standards. 

• Recommendations include further development of typologies, improvements in data quality, and enhanced outreach to the non-life sector. 

This assessment forms part of the Island’s broader National Risk Assessment framework as part of a ‘ground up’ approach to establishing a detailed picture of the risks facing the Isle of Man and will inform the upcoming National Action Plan. 

Minister of Justice and Home Affairs Jane Poole-Wilson MHK said: ‘Insurance is a cornerstone of the Isle of Man’s economy and a sector of strategic importance internationally. Understanding our risks is vital to maintaining the Island’s reputation as a well-regulated and responsible jurisdiction.

‘This updated assessment provides clarity and assurance to industry and demonstrates our ongoing commitment to meeting global standards in combating financial crime.’ 

The Isle of Man Financial Services Authority and industry partners have worked collaboratively to produce this assessment, which underscores the Island’s proactive approach to financial crime prevention. 

Extensive industry engagement will take place to ensure Island firms have a thorough understanding of the NRA and relevant sector risk assessments. 

For further details and to access the full report visit https://counteringfinancialcrime.im.