IoM To Adopt EU Wire Transfer Regulations
by Jason Gorringe, Lowtax.net, London
15 August, 2016
The Isle of Man has published draft regulations that would transpose the European Union's new "wire transfer" regulation into its law.
The EU regulation provides for stricter requirements for the information accompanying electronic transfers of funds between an EU member state and a third country or territory than for transfers between member states or within a member state.
At present, electronic transfers of funds by payment service providers between the Isle of Man and the United Kingdom (UK) are treated as if they were transfers within the UK. This treatment has been authorized by the European Commission as a derogation from the relevant EU legislation because the island has implemented the same rules as the EU legislation.
If transfers of funds between the Isle of Man and the UK are to continue to be treated as if they were transfers within the UK, the island must implement the same rules as those in the new EU legislation.
The new Isle of Man regulations provide that the Isle of Man Financial Services Authority is the competent authority for the purposes of the EU regulation. The regulations set out the duties of the Authority and the powers of the Authority to enforce the EU regulation and the Isle of Man's implementing regulations.
The new regulations also establish that breaches of the EU regulation are criminal offenses and sets out the penalties on conviction for such offenses, including offenses by bodies corporate. The island's regulations use the option, as permitted by the EU regulation, not to lay down rules on administrative sanctions or measures for breach of the provisions of the EU regulation which are subject to criminal sanctions.
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