The forthcoming review will be a defining moment for one of the world’s most sophisticated international finance and eGaming jurisdictions, testing not only the strength of its anti-money laundering (AML) and counter-terrorist financing (CTF) frameworks but also its ability to demonstrate effectiveness in an increasingly demanding global environment.

For financial services firms, trust and corporate service providers, banks, insurers, and gaming operators, the evaluation represents a critical inflection point.

Success will reinforce the island’s reputation as a high-quality international business centre.

Failure could introduce additional reputational challenges at a time when global regulators are placing unprecedented emphasis on transparency, beneficial ownership, sanctions compliance, and financial crime prevention.

A New Era of FATF Assessments

The global AML/CTF landscape has evolved significantly since the Isle of Man’s previous evaluation cycle.

Historically, jurisdictions were largely assessed on whether appropriate laws, regulations, and supervisory structures existed. Today’s evaluations focus increasingly on outcomes and effectiveness. Regulators and assessors are asking a more fundamental question: can a jurisdiction demonstrate that its framework actively prevents, detects, investigates, and prosecutes financial crime?

Indeed, such shifting focus for evaluations rely heavily on the Financial Action Task Force (FATF) “Immediate Outcomes” framework,

For the Isle of Man, assessors are likely to pay particular attention to:

• Immediate Outcome 3 – Supervision
• Immediate Outcome 4 – Preventive Measures
• Immediate Outcome 5 – Beneficial Ownership
• Immediate Outcome 7 – Money Laundering Investigation and Prosecution
• Immediate Outcome 10 – Terrorist Financing Preventive Measures
• Immediate Outcome 11 – Proliferation Financing Sanctions

Jurisdictions with mature legal frameworks can no longer rely solely on legislative compliance. As the above list demonstrates, they must evidence effective supervision, robust enforcement, high-quality intelligence sharing, and measurable risk mitigation.

The Isle of Man appears acutely aware of this challenge. In January of this year, MONEYVAL formally launched its sixth-round evaluation process accompanied by extensive engagement and training involving government agencies, regulators, law enforcement, and private-sector participants. More than 180 stakeholders participated in preparatory sessions, underscoring the significance being attached to the assessment.

A Jurisdiction That Has Been Preparing for Years

The forthcoming evaluation should not be viewed in a vacuum. Since its 2016 mutual evaluation, the Isle of Man remained under enhanced follow-up and undertook a sustained programme of regulatory enhancement. Several FATF recommendations were also subsequently upgraded following reforms to the island’s AML/CFT regime. Progress has been particularly evident in areas such as beneficial ownership transparency, customer due diligence obligations, and information-sharing mechanisms.

Indeed, more recently authorities introduced even further reforms to strengthen beneficial ownership requirements, including amendments designed to align the definition of registrable beneficial ownership more closely with current FATF standards. These changes are widely seen as further preparation for MONEYVAL.

The publication of the 2026 National Risk Assessment similarly demonstrates a mature and evolving approach to risk identification, with regulators emphasising the need for firms to reassess business risk frameworks and ensure controls remain proportionate to emerging threats.

Financial Services: A More Intensive Supervisory Environment

For the financial services sector, the regulatory direction of travel is clear. The Isle of Man Financial Services Authority has steadily moved toward a more risk-based and intelligence-led supervisory model. Firms are increasingly expected to demonstrate not only technical compliance but also a deep understanding of their risk exposure, customer base, geographic footprint, and transactional activity.

Several themes are likely to attract scrutiny during the evaluation:

1. Beneficial Ownership Transparency

Global attention on beneficial ownership has intensified dramatically following sanctions developments, geopolitical tensions, and the increased use of complex structures to conceal illicit wealth.

The Isle of Man’s above-mentioned efforts to strengthen beneficial ownership reporting and transparency will, therefore, be closely examined. The ability of authorities to access accurate and timely ownership information remains a key FATF priority.

2. Sanctions and Proliferation Financing

Recent evaluations increasingly focus on:

• • Targeted financial sanctions
  • Russia-related sanctions implementation
  • Proliferation financing controls

Financial services and gaming communities in the Isle of Man shall illustrate effective due diligence that covers, among others, sanctions and proliferation financing risks.

3. Risk-Based Supervision

Assessors will evaluate whether supervisory resources are genuinely aligned with higher-risk sectors and activities.

This places significant emphasis on trust and corporate service providers, private wealth structures, cross-border business models, and higher-risk customer segments.

4. Effectiveness of Enforcement

One of the most important aspects of more recent evaluations involve demonstrating outcomes. Regulators must show evidence of effective supervisory interventions, enforcement actions, intelligence utilisation, and meaningful sanctions where deficiencies are identified.

The focus is no longer whether powers exist; it is whether they are used effectively.

Gaming: The Island’s Most Visible Regulatory Showcase

No sector is likely to attract more international attention than gaming, with the Isle of Man spending more than two decades building a reputation as a crucial eGaming jurisdiction. That reputation has traditionally been founded on a balance between commercial attractiveness and regulatory credibility.

Today, regulatory credibility is becoming the dominant differentiator.

The Gambling Supervision Commission (GSC) has increasingly demonstrated a willingness to take visible enforcement action where AML/CFT weaknesses are identified. Indeed, recent public statements relating to compliance investigations illustrate a more assertive supervisory approach and reinforce expectations regarding customer due diligence, source-of-funds verification, ongoing monitoring, and governance standards.

In parallel, the GSC also issued enhanced AML guidance for network services operators and other complex licensing structures, reflecting the growing sophistication of online gaming business models and associated financial crime risks.

For gaming operators, several themes are likely to remain front and centre:

• Customer risk assessment and enhanced due diligence
• Source of wealth and source of funds verification
• Monitoring of high-value and high-velocity transactions
• Third-party and network service arrangements
• Sanctions screening and geopolitical risk management
• Governance, accountability, and board oversight

The challenge for operators is that regulatory expectations continue to rise while business models become increasingly global, digital, and interconnected.

Beyond Compliance: Reputation as a Competitive Advantage

Perhaps the most important consideration is that the upcoming evaluation is ultimately about reputation.

International finance centres operate in a trust economy. Investors, correspondent banks, institutional partners, regulators, and multinational corporations increasingly evaluate jurisdictions through the lens of financial crime resilience.

A strong MONEYVAL outcome would provide powerful validation of the Isle of Man’s regulatory model and support its positioning as a well-regulated, internationally connected financial centre. More importantly, it would demonstrate that the Island has successfully transitioned from a framework-focused approach to an effectiveness-focused model, which is precisely the direction global standards are moving.

Unfortunately, a week outcome would mean that the opposite is also true.

Looking Ahead

The upcoming MONEYVAL evaluation should not be viewed only as a regulatory hurdle but also as an opportunity.

For regulators, it is a chance to showcase years of investment in supervision, enforcement, and policy development.

For financial services firms and gaming operators, it is an opportunity to demonstrate that compliance is no longer simply a regulatory obligation but a strategic capability to promote the transparency of the jurisdiction, increase and protect its attractiveness.

Indeed, the jurisdictions that will thrive in the next decade are not necessarily those with the lightestregulation. The forthcoming evaluation will provide an important opportunity for the Isle of Man to demonstrate that innovation, competitiveness, and regulatory integrity can coexist within a modern international finance centre.

Building on similar presentations regarding source of wealth and its importance as part of the due diligence process far beyond a tick-the-box approach, Nadia tailored the discussion to Gibraltar’s ecosystem, offering practical strategies for onboarding HNWIs and UHNWIs, navigating high-risk jurisdictions and complex structures, and mitigating third-party and counterparty risk.

Using real-world insights and case studies, Nadia highlighted the need for enhanced due diligence and source of wealth reports and how such investigations can protect companies from reputational and regulatory risks.

Represented by Roi Lavi, Managing Director for Europe, and Miriam Goldman, group COO, the two enjoyed meeting peers from various industries and participating in insightful sessions. This includes a panel on the first day that was moderated by Roi on the geopolitical impact on investigations. Joined by Salim Kiwirra, Nicolas Graber, Stefano Barone, and Michele Poffo, they tackled topics from the 2014 sanctions against Russia to the current blockade of the Strait of Hormuz.

A heartfelt thank you to the organizers and fellow speakers for fostering engaging discussions on key topics.

After an impressive presentation to STEP Cayman in April, its sister organization STEP Guernsey invited Nadia to give a seminar on source of wealth and its importance as part of due diligence.

Aiming at providing practical examples and real-world challenges, while triggering interesting discussion, she emphasized why source of wealth involves substantially more than a tick-the-box approach (warning against, among others, the risk of “comfortable familiarity”), key distinctions between source of wealth and source of funds, and how organizations can build stronger, more risk-based due diligence frameworks.

Nadia’s presentation to STEP Cayman members provided practical lessons and insights into how international financial centers, including Cayman specifically, can navigate FATF expectations and internal compliance standards ahead of the FATF examination in 2027

With practical lessons drawn from the Jersey and Monaco cases, she emphasized the importance of remediation, understanding of source of wealth, and clear due diligence sets of controls.

With regulatory scrutiny increasing, the key message was clear: firms must take a proactive approach to governance, risk, and compliance to remain resilient.

Moderated by Nadia A. Ziani, Director for the UK & Channel Islands, the sessions explored practical ways organizations can strengthen governance frameworks, stay ahead of enforcement trends, and embed a culture of accountability. The discussions highlighted the importance of strong oversight and clear internal processes. Indeed, firms that act early are better positioned to manage risk and meet regulatory expectations.

With over a decade of experience in research and intelligence, Miriam leads Sqope’s day-to-day operations, ensuring strong data privacy and IT security standards while supporting international expansion and strategic partnerships. Her background leading global risk analyst teams brings deep insight into the company’s services and processes.

We are proud to see Miriam recognized among influential women shaping the future of risk and intelligence.

Read more about Miriam and her recognition here.

This recognition highlights Emily’s outstanding contribution to the field of due diligence and financial crime risk, as well as her leadership within Sqope. Through her work, Emily exemplifies the analytical precision, integrity, and innovation that define our approach to intelligence.

As a leader, she plays a central role in guiding our team of analysts and advancing Sqope’s expertise across complex topics such as money laundering typologies, sanctions evasion, and ESG-related risks. Her forward-thinking mindset and commitment to excellence continue to strengthen our mission of delivering insightful, reliable intelligence to clients worldwide.

Read more about Emily and her recognition here.