New civil fines of up to £1m for Isle of Man sanctions offences

The Isle of Man applies international sanctions imposed by the UK

Plans to bring in new fines of up to £1m for financial sanctions offences on the Isle of Man have been outlined by the Manx government.

It is one of the measures proposed in a new bill aimed at improving how international sanctions are enforced.

A Treasury spokesman said the civil penalties would allow offences to be punished "more efficiently and effectively" than criminal proceedings.

The fines would mirror those introduced in the UK in 2017.

Offences which breach financial sanctions laws include dealing with the assets of a sanctioned person and failing to report frozen assets,

The fines will be issued in cases where it is "not in the public interest to pursue a criminal prosecution" and where warning letters are "unlikely" to change behaviour, a government spokesman said.

'Limitations'

A consultation has been launched on the draft sanctions bill, which also includes new legal powers to allow the Manx government to apply sanctions more quickly.

Currently the Isle of Man automatically introduces UK and UN sanctions but "limitations" over the legal routes to do this mean there is a risk of delays and non-compliance, the document said.

A more "modern and flexible legislative framework" is proposed in the bill, which would free up staff to focus on enforcement and improving guidance for Manx firms.

The consultation, which closes on 27 January, comes after the island's government introduced a raft of international sanctions on Russian individuals and businesses in the wake of the invasion of Ukraine.