The government has published its Money Laundering Risk Assessment for the banking sector.
The assessment builds upon the 2020 National Risk Assessment (NRA) and forms part of the broader programme of sector-specific NRAs being released in support of the National Financial Crime Strategy 2024–2026.
The island’s banking sector holds over £40 billion in deposits and processing nearly £80 billion in annual payments.
Medium-High Risk
While the sector demonstrates strong Anti-Money Laundering (AML) controls and regulatory compliance, its international profile and rapid transaction capabilities contribute to a medium-high overall Money Laundering (ML) risk rating.
The assessment identifies a number of emerging threats, including cyber-enabled crime, fraud, and the misuse of virtual assets, and outlines several proposed actions to further strengthen the sector’s resilience.
These include expanding typology documentation, enhancing collaboration to reduce fraud risk, and improving data systems to better understand financial flows.
‘valuable insights’
Jane Poole-Wilson MHK, Minister for Justice and Home Affairs and AML/CFT Lead for the government, said: “The banking sector report provides valuable insights to help the sector and authorities continue to adapt and strengthen our defences against financial crime.
“I would like to personally thank colleagues from the sector who participated in its development. The NRA process relies on a considerable volume of data that needs to be collected and analysed for the risk assessments to be as robust as possible. I appreciate the time and effort that has been put in to produce a detailed report backed by good quality data.’
“The NRA will have a significant bearing on the island’s MONEYVAL mutual evaluation in October 2026. We continue to work collaboratively with businesses to enhance understanding and ensure they are well prepared to communicate how their internal compliance regimes reflect the sectoral and national risk assessments.”
