Isle of Man actions support sanctions against Russia

Thu, 10 Mar 2022

Further sanctions have been put in place to reinforce economic action taken by world leaders against Russia, supported by detailed reviews of the Isle of Man ship and air registries.

Much work has taken place and remains ongoing to ensure businesses in the Isle of Man carefully review all financial connections with Russian individuals and organisations, and take action when necessary.

Chief Minister Alfred Cannan MHK said: ‘Russia’s actions in Ukraine are deplorable and it’s essential that the Isle of Man plays its part in bolstering the sustained economic offensive being played out in support of Ukraine.

‘We have acted decisively to ensure that sanctions are enforced whenever required, and will continue to do so.  These actions and ongoing reviews send out a clear message that the Isle of Man will not be a safe haven for Russian money or assets.’

The Isle of Man Government’s policy is to keep the implementation of international sanctions measures in line with those that have effect in the UK, which is responsible for the Island’s international relations.

When a person or body is added to the UK list of those falling under new financial sanctions, that person or body is automatically subject to equivalent measures in the Isle of Man. Similarly, if the UK imposes a travel ban on a person, that person is also subject to a travel ban under Manx law.

The Financial Services Authority has today written to all its regulated and supervised firms to stress the importance of vigilance, and that sanctions obligations apply to all persons and businesses in the Isle of Man.

The letter, which is available on the Financial Services Authority website, reads: ‘All relevant persons in the Isle of Man must ensure they have a comprehensive understanding of the risks presented by their customer base and have in place appropriate procedures and controls to mitigate those risks. Increased vigilance and enhanced monitoring are strongly recommended, and should already be taking place.’

Emphasis is placed on actions which must be taken, along with the legal requirements regarding monitoring the sanctions list, possible weaknesses in the compliance process and best practice.

Detailed ongoing reviews of both the Isle of Man Ship Registry (IoMSR) and the Isle of Man Air Registry (IoMAR) are taking place to establish any connections with Russia.

If the UK sanctions an individual, or takes other similar measures, the registries are duty bound to act in accordance with such measures; under these circumstances an aircraft, ship or yacht would be de-registered following required legal and regulatory processes.

Connections have been identified on IoMAR, leading to the registrations of eight aircraft being cancelled. Further action is likely to follow as the wider situation evolves and more information becomes available.

No connections have yet been identified on the IoMSR.

In both cases, sanctions listings are being reviewed daily with a view to taking appropriate steps that support the co-ordinated international response.

 

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