The Isle of Man Financial Services Authority has imposed a civil penalty of £2,376 on Edwin A Fryer Accountant for systemic failures in anti-money laundering and countering the financing of terrorism compliance.
The penalty, discounted by 10% due to early cooperation, follows an inspection and investigation revealing longstanding contraventions of the AML/CFT Code 2019.
The FSA found EAF, a sole practitioner registered as an External Accountant, Tax Adviser, and Payroll Agent, had failed to establish essential procedures, including Business Risk Assessments, Customer Risk Assessments, and ongoing monitoring.
The Authority stated: “EAF’s failure to establish, record, operate and maintain adequate AML/CFT procedures and controls increases the vulnerability of EAF being used for money laundering or terrorist financing.”
Key failures included neglecting customer due diligence, beneficial ownership checks, and staff training.
The penalty reflects EAF’s cooperation but underscores the sector’s risks.
The FSA warned, “Accountants may be used by money launderers to provide additional layers of legitimacy to criminal financial arrangements.”
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