The Isle of Man has published its first standalone National Risk Assessment (NRA) on Proliferation Financing (PF), setting out how the Island’s financial system prevents potentially being misused to support the spread of weapons of mass destruction.
This marks a significant milestone as the 2026 suite of NRAs are now concluded ahead of the Island’s MONEYVAL mutual evaluation onsite this autumn.
The assessment finds that the Island’s overall residual risk is medium-low, reflecting strong legal frameworks, effective implementation of international sanctions, and very limited direct exposure to high-risk countries.
There is almost no direct link to UN-designated proliferation states, such as North Korea and Iran, and minimal local trade in high-risk or dual-use goods. However, as an international finance centre, the Island remains exposed to indirect risks through global financial connections, including cross-border transactions and complex international company structures.
The assessment confirms that the Isle of Man has a strong and well-established framework to counter proliferation financing. This includes robust sanctions implementation, effective supervision, and strong cooperation between government, regulators and law enforcement.
While the likelihood of such activity remains limited, the report notes that any instance of proliferation financing could have serious consequences, reinforcing the need for continued vigilance.
The assessment also identifies areas for ongoing improvement, particularly increasing awareness, strengthening data collection, and providing further guidance and training to industry.
Jane Poole-Wilson MHK, Minister for Justice and Home Affairs, said:
‘This assessment demonstrates the Isle of Man’s commitment to combatting all financial crime and upholding international standards.
‘Whilst our Island is a comparatively safe place, we will make every effort to ensure proliferation financiers cannot use our status as an International Finance Centre to aid their criminal activities. This report provides a clear understanding of the risks and how we will continue to address them.
‘We are clear that the Isle of Man will not tolerate those who seek to commit crime either on or through our Island.’
The Proliferation Financing National Risk Assessment forms part of the Island’s wider Financial Crime Strategy 2024–2026.
The PF assessment sits alongside the Island’s wider suite of NRAs published throughout 2025/26, covering:
- Money Laundering (ML)
- Terrorist Financing (TF)
- Sectoral risks across banking, insurance, trust and corporate service providers, virtual assets, gambling, legal persons and arrangements, and non-profit organisations
Together, these provide the foundation for a risk-based, whole-system response to financial crime.
The full report is available on the Countering Financial Crime website.
What Proliferation financing (PF) is
Proliferation financing refers to the raising, moving or use of funds or financial services to support the development, acquisition, manufacture or transfer of weapons of mass destruction (WMD), such as nuclear, chemical or biological weapons, along with their delivery systems.
Why it is important
PF is a global security concern. Even jurisdictions with low direct exposure can be used indirectly through international financial networks.
What a National Risk Assessment (NRA) is
An NRA is a structured process used to identify, assess and understand financial crime risks, helping governments, regulators and industry take a risk-based approach to prevention.
Key findings from the report:
- Overall PF risk assessed as medium-low
- No evidence of domestic PF activity
- Very limited direct exposure to higher-risk jurisdictions
- Risks primarily arise from international financial connectivity
