FATF and MONEYVAL

What is the MONEYVAL mutual evaluation?

MONEYVAL assesses its members' compliance with the international AML/CFT/CPF Standards set by the Financial Action Task Force (“FATF”) through a peer review process of mutual evaluations. Countries are assessed on their technical compliance with the 40 FATF Recommendations and the effectiveness of their AML/CFT/CPF systems and the extent to which they achieve a defined set of outcomes.  

What is the process for a mutual evaluation?

  1. Pre-evaluation phase

The evaluated country submits a self-assessment questionnaire covering laws, regulations, and AML/CFT/CPF measures.

The Assessment Team (“AT”)  conducts a desk-based review of the country's legal framework.

The AT is made up of legal, regulatory and law enforcement experts from other MONEYVAL member countries.

  1. On-site visit

The AT visits the evaluated country for 2-3 weeks, meeting with government agencies, financial institutions, law enforcement, and private sector representatives.

  1. Drafting of the mutual evaluation report (“MER”)

The evaluation team analyses its findings and rates the country’s technical compliance and effectiveness. They also make recommendations to the national authorities to improve their systems.

The draft report is shared with the country for comments and there is engagement between the AT, MONEYVAL Secretariat and evaluated country.

  1. Plenary discussion and adoption of MER

At the MONEYVAL Plenary, countries discuss and approve the final MER.

  1. Follow-up process

Countries enter a monitoring process (regular follow-up or enhanced follow-up).

The FATF publicly identifies high-risk jurisdictions with weak measures to combat ML, TF and PF to encourage the necessary reforms:  

  • The "Grey List" (Jurisdictions under Increased Monitoring) includes countries with strategic deficiencies in AML/CFT/CPF measures, but have committed to improving their frameworks.
  • The "Black List" (High-Risk Jurisdictions subject to a Call for Action) includes countries with serious strategic deficiencies in AML/CFT/CPF frameworks that are non-cooperative and pose a significant risk to the global financial system. The FATF calls on member states to apply countermeasures, such as enhanced due diligence, restrictions, or sanctions.

The Isle of Man’s Fifth Round MONEYVAL Mutual Evaluation

In 2016, a group of MONEYVAL experts carried out an assessment of the Isle of Man, resulting in the Island’s ‘Fifth Round Mutual Evaluation Report of the Isle of Man. The MER was published in December 2016 and provided a comprehensive assessment of the extent to which the Isle of Man had implemented the 40 FATF Recommendations and highlighted areas where further progress was required.

Following the completion of the mutual evaluation, the Isle of Man was placed into an ‘enhanced follow-up’ process with MONEYVAL, in order to monitor progress in improving its AML/CFT regime. This is not unusual after a Fifth Round Evaluation; the majority of countries assessed to date have been placed in this category and all jurisdictions are placed into some form of follow-up process.

 

Progress made since the publication of the Island’s Fifth Round MER

The Isle of Man Government, regulatory and law enforcement authorities have undertaken a considerable amount of work since the publication of the MER in 2016, in order to address the findings and numerous recommended actions of the in-depth assessment. Actions include increased investment in an expanded Financial Intelligence Unit, the formation of an Asset Recovery Unit within the Attorney General’s Chambers and the enactment of legislation dealing with money laundering.

In 2020, a review report was published by the Isle of Man Government on the progress, which has been made in relation to tackling money laundering and combatting the financing of terrorism. The review demonstrated that the Isle of Man had made significant progress and highlighted what work has been completed since the MONEYVAL evaluation took place, providing a more detailed analysis of actions taken against each of the recommendations made in the MER.

The Isle of Man is now positively marked in 39 out of the 40 FATF Recommendations, which puts the Island amongst a select group of leading nations in the world for technical compliance in anti-money laundering measures. Following the conclusion of the 61st MONEYVAL Plenary Council meeting in April 2021, it was confirmed that the Isle of Man is no longer required to report to MONEYVAL on an annual basis.  The Isle of Man remains in the ‘enhanced follow-up’ process until the next on-site review takes place; however will only be required to report to MONEYVAL every three years.

 

When is the MONEYVAL mutual evaluation?

MONEYVAL has confirmed that the Isle of Man’s on-site visit for the 6th Round Mutual Evaluation will take place in October 2026.
The Isle of Man Financial Services Authority has published a timeline for the MONEYVAL process which includes information on the MONEYVAL mutual evaluation, the National Risk Assessment, training sessions and upcoming Outreach.

 

Preventing crime through AML/CFT compliance

AML/CFT compliance is essential to combatting ML/TF/PF and preventing gambling from becoming associated with crime and disorder.

 

Collaboration

The support and cooperation of the public and private sectors are critical in the fight to stop financial crime on a national and international level.

The GSC’s programme of outreach and engagement with key stakeholders will continue to develop in the coming years to keep abreast of developments regarding the mutual evaluation.

 

All-Island Approach

The Isle of Man Government set out an all-island approach to tackling ML/TF/PF in the 2024 – 2026 Financial Crime Strategy. Delivery of this Strategy is a political priority for Isle of Man Government and all agencies are committed to its implementation.

The Isle of Man’s AML/CFT/CPF regime is based on the FATF’s “International Standards on Combating Money Laundering and the Financing of Terrorism”, also referred to as the FATF Recommendations. 

Jane Poole-Wilson MHK, Deputy Chief Minister and AML/CFT lead for the Isle of Man Government, said: ‘Countering financial crime is a constant, year-round commitment for this Government. We take our responsibilities in protecting our communities and businesses from criminality seriously. The MONEYVAL evaluation in 2026 is an opportunity to showcase our continued efforts to remain a trusted and responsible member of the global community.’

She added: ‘Government cannot secure a positive outcome alone. That’s why I am keen to ensure effective collaboration between industry, the government and the financial services regulator. We are driving a robust and co-ordinated national response which will demonstrate the integrity of the Island’s financial systems and maintain our long-standing track record of compliance with international standards.’[1]

[1] Isle of Man Financial Services Authority, https://www.iomfsa.im/fsa-news/2025/feb/date-confirmed-for-island-s-moneyval-evaluation/