The Isle of Man, long known for its scenic landscapes and reputation as a trusted offshore finance centre, is now finding itself on the frontlines of a battle against organised crime. Behind the island’s calm exterior, Liverpool drug gangs, cross-border money launderers, and sanctions evaders are testing its financial system with increasing boldness. Prisons are filling with offenders linked to transnational networks, and authorities are racing to update laws, strengthen supervision, and prepare for a major MONEYVAL evaluation in 2026.
At the 2025 Countering Financial Crime Conference in Douglas, government leaders sent an unmistakable message: the threats are real, they are growing, and the island will act decisively to root them out. For compliance professionals both on the island and abroad, there is a present and urgent demand for stronger controls, sharper intelligence, and relentless vigilance.
The growth of serious organised crime
The Isle of Man’s sleepy image conceals a sharp rise in serious criminal activity, much of it linked to Liverpool-based gangs just across the water. Police have reported record seizures: £464,000 of cocaine, £250,000 of cannabis, and £75,000 of ketamine in just the last financial year. Nearly 40% of the Island’s prison population is now connected to organised crime, with brazen cases of drug traffickers smuggling narcotics via ferries, parcels, and even microwaves.
These gangs aren’t just moving drugs. They’re laundering proceeds through Manx financial structures and exploiting weaknesses in regulatory reporting. For compliance teams, this underscores the heightened need for transaction monitoring, enhanced due diligence (EDD) on high-risk clients, and scrutiny of cash-intensive sectors.
Redefining financial crime on the island
The Isle of Man Government is preparing to expand its statutory definition of financial crime under the Financial Intelligence Unit Act. Bribery, corruption, and sanctions breaches will soon be explicitly included, alongside money laundering and terrorist financing. This reform will give the Financial Intelligence Unit (FIU) stronger enforcement powers – and widen the scope of offences firms must detect and report.
For compliance teams, this means:
- Refreshing risk assessments to cover bribery, corruption, and sanctions circumvention.
- Updating policies and training to reflect the new legal framework.
- Ensuring SAR processes capture suspicions beyond traditional ML/TF.
From Douglas to the world: The global compliance angle
The Island’s updated National Risk Assessment (NRA) and National Risk Appetite Statement (NRAS), particularly for e-gaming and related industries, are designed not only for local firms but also for international businesses interacting with Manx entities.
The 2026 MONEYVAL evaluation looms large, and the Island is determined to demonstrate alignment with FATF standards.
Businesses outside the Isle of Man should pay close attention if they:
- Rely on Manx corporate service providers, banks, or trust structures.
- Operate in sectors with elevated risk exposure (e-gaming, crypto, shipping, non-profit organisations).
- Deal with high-value cross-border payments involving the Isle of Man.
Global compliance teams should ask themselves: do we have adequate oversight of Manx counterparties, and are we testing for financial crime red flags unique to the Island’s context?
Practical priorities for Manx-exposed compliance teams
Enhanced Due Diligence – Pay special attention to connections with Liverpool and North West England, given the proven organised crime pipeline.
Sanctions Monitoring – With sanctions breaches now firmly in scope, firms must ensure their systems can identify both direct and indirect exposure.
Data-Driven Risk Monitoring – Use analytics to spot unusual transaction flows that could suggest laundering of drug proceeds.
Sector-Specific Controls – Firms in e-gaming, crypto, and fiduciary services must document how they are applying the NRAS to mitigate unique sector risks.
Cross-Border Collaboration – Global firms with Manx links should actively liaise with regulators, auditors, and local compliance officers to ensure standards align.
