The Isle of Man Government published the latest sectoral risk assessment for the Trust and Corporate Service Providers (TCSP) sector on 11 March, alongside the overall the updated National Risk Assessment (NRA) for Money Laundering.
The Money Laundering NRA sits at the centre of the Island’s wider programme of National Risk Assessments, which also includes terrorism financing and proliferation financing, and reflects extensive collaboration across Government, regulators and industry partners.
It confirms that the Isle of Man’s overall money laundering risk remains Medium High, which is consistent with the findings of the previous 2020 assessment.
Despite the increasingly complex landscape of global financial crime, the Island continues to benefit from strong political and economic stability, as well as developed legal and regulatory frameworks which help maintain a stable risk profile.
The assessment reinforces that, as an international financial centre, the Isle of Man remains exposed to certain external risks including foreign predicate offences and complex multijurisdictional structures, and that ongoing understanding and management of these risks is essential.
The TCSP NRA confirms that the money laundering risk for TCSPs also remains Medium High, reflecting the sector’s international client base and its use of complex structures.
The assessment acknowledges strengthened controls since 2020, including enhanced supervision by the Financial Services Authority, thematic reviews and improved sector guidance, while identifying areas where continued focus will help maintain strong financial crime defences.
The TCSP sector remains economically significant, supporting domestic and international businesses and accounting for around 3% of national income.
Together, these assessments form an essential evidence base for the forthcoming National Action Plan and will guide future outreach and regulatory engagement. Regulated firms are required by legislation to incorporate NRA findings into their internal risk assessments, and industry can expect ongoing engagement from supervisors to support effective implementation.
“The publication of these assessments demonstrates our continued commitment to transparency, robust oversight and the responsible management of financial crime risks,” said Justice and Home Affairs Minister Jane Poole-Wilson.
“Maintaining a stable risk profile in an increasingly complex global environment reflects the strength of our regulatory framework and the collective efforts across the Island to safeguard the integrity of our financial system.”
The publication of the ML NRA and the TCSP sector assessments mark an important milestone in demonstrating the effectiveness of the Island’s anti-money laundering, framework and support ongoing engagement with international standards. Further sectoral assessments, including those for Legal Persons and Arrangements and for Virtual Asset Service Providers, will be published shortly.
