As a small CSP, staying compliant with the Isle of Man Financial Services Authority (IOMFSA) standards should be a top priority. Not only will it help protect your customers from potential financial risks or losses, it will also ensure that your business is running efficiently and in line with the regulations.
By adhering to IOMFSA standards, you can have peace of mind knowing that your customers’ funds are safe within a regulated environment. Furthermore, being compliant with IOMFSA regulations will ensure a competitive edge, as more customers will be confident to do business with you.
We recognise that staying compliant with the IOMFSA can be an intimidating task for small CSPs. It can be challenging for small teams to maintain a robust compliance programme alongside running your business.
Perhaps you’re maintaining ad-hoc compliance procedures, and required tasks are starting to escalate. Worry may be setting in and you may be unsure how to move forward without incurring significant cost.
It’s time to find peace of mind – and it won’t cost as much as you think (more on that later).
What are the consequences of IOMFSA non-compliance?
As you are no doubt aware failure to stay compliant with the IOMFSA’s regulations and reporting requirements can result in various legal and financial consequences. These may include fines imposed by the regulator, an inability to transact business or even criminal prosecution if found guilty of serious breaches.
What resources are available to help you stay compliant with the IOMFSA?
The regulator’s website provides detailed information on the relevant regulations and reporting requirements.
Often the most efficient way to stay compliant is by speaking to an external compliance consultant who can help you better understand your obligations and how to meet them.
An external consultant can undertake an external review of your business practices. Then follow up with bespoke advice on findings and changes you may need to make to stay compliant with the IOMFSA.
External consultants can also develop compliance manuals and frameworks and conduct regular audits to ensure ongoing compliance. Ensuring you have peace of mind.
What are the steps to staying compliant with the IOMFSA?
The first step for any small CSP is staying informed by keeping track of new rules or guidelines that may affect your operations.
It is a legal requirement to have an Anti-money laundering (AML) and Countering the Financing of Terrorism (CFT) manual, and these should be up to date.
With the AML Handbook changes in July last year and increased sanctions associated with Russia, are you happy that your compliance manuals would pass an IOMFSA inspection?
Another key step for staying compliant is being organised. This means keeping detailed records of operations and processes, as well as any changes that may have taken place over time. This can help you to identify potential risks, follow best practices for security and privacy, and ensure compliance with the IOMFSA.
Finally, small CSPs should invest in dedicated resources to handle compliance-related duties such as staying up to date with relevant regulations and reporting any changes or incidents. This is especially important in cases where the company has fewer than five employees, as they may not have the capacity to dedicate time to staying compliant on their own.
Efficient, affordable solutions for small CSPs
There are efficient and affordable solutions to ensure a safe and compliant environment – you simply need to:
a) recognise you need support and
b) take the first step by having a free confidential initial chat with an external compliance expert.
Once you take these first steps, you will feel a huge weight lift from your shoulders.
No one person should have to bear this weight of responsibility alone.
That’s why Impact are offering a fixed fee of £1500 on the development of a bespoke AML/CFT Manual for CSPs with less than 10 employees for a limited time only.
You can learn more by:
- emailing [email protected]
- calling 01624 820601
- or booking straight into our diary here – https://impactiom.com/free-compliance-consultation/
A final note
With the Authority known to be focussing on CSPs currently, if you have been worrying about the state of your compliance, the time to act is now.
The instant relief you will feel following a quick chat with us will be worth your time, we promise.
Ultimately, staying compliant with the IOMFSA is critical for all CSPs. Whilst there are costs associated with using an external compliance consultant, these can be seen as a positive investment when faced with severe and long-lasting penalties for ‘non-compliance’.
