Isle of Man headquartered RL360 has agreed to pay the Isle of Man Financial Services Authority (IFSA) a total of £1.95m in a civil penalty relating to historic anti-money laundering procedures.
II understands that the size of the fine is in relation to a percentage of the company’s turnover rather than the severity of the breaches. The IFSA has been undertaking a review of Isle of Man based companies procedures and has already issued fines to other financial services companies based on the island. II also understands that it is expected that more settlements and civil penalties will follow as the regulator looks to clamp down further.
The company and regulator has not commented on the matter but instead issued a statement that reads:
In 2023, the Isle of Man Financial Services Authority (IFSA) undertook an Anti-Money Laundering inspection of RL360.
The IFSA’s inspection report outlined certain areas for improvement in RL360’s approach towards the management of its Anti-Money Laundering risks, some of which had already been self-identified.
RL360 reviewed the IFSA’s findings, obtained external legal advice and was able to provide additional information to the IFSA.
RL360 agreed to accept the contraventions identified in the Inspection Report issued in February 2023 and subsequently entered into a Settlement Agreement. RL360 has already taken substantial steps to remediate matters.
The outcome of the settlement arrangement was a civil penalty of £1,950,000 (discounted by 30% in recognition of RL360’s ongoing commitment to cooperate with the IFSA to reach conclusion) and a public statement.
It should be noted that:
- The IFSA noted there were significant mitigating factors in this case. Prompt and effective remedial action was completed in a timely manner.
- The IFSA acknowledged the positive engagement by RL360 throughout, the constructive dialogue, and gave credit for the programme of work already completed by RL360 during and after the review.
- RL360 is satisfied that no money laundering has taken place and none of the identified contraventions resulted in customer detriment as a result of the areas for improvement identified by inspection.
Previous fines issued to other financial services companies based on the island include a fine to Capital International and HSBC Bank, IQ EQ and Nedbank among others according to the regulator’s website.
