The Banking Act 1998 provides a framework for the licensing and
supervision of banking institutions.
Organisations carrying out activities defined by Section 1 of the Banking Act, require a licence from the Financial Supervision Commission to do so. However, investment business can be conducted without a separate licence issued under the Investment Business Act.
Licenses are normally subject to the Banking (General Practice) Regulatory Code, which details the FSC's regulatory requirements.
Other statutes which are relevant to the Commission's work are the Isle of Man Companies Acts 1931-2004, the Limited Liability Companies Act 1996, and the Companies Act 2006.
Several pieces of legislation should be mentioned which relate to the Isle of Man's desire to protect itself and institutions doing business on the Island.
This protection is against abuse by criminals, and also and those who seek to cloak their transactions in banking and investment markets.
These statutes are:
- Drug Trafficking Offences Act 1987
- Companies Securities (Insider Dealing) Act 1987
- Prevention of Terrorism Act 1990
- Criminal Justice Acts 1990/1991/2001
- Drug Trafficking Act 1996
- Criminal Justice (Money Laundering Offences ) Act 1998
- Terrorism (United Nations Measures) (Isle of Man) Order 2001
- Anti-Money Laundering (Online Gambling) Code 2002
- Anti-Terrorism and Crime Act 2003
- Criminal Justice (Money Laundering) Code 2007 (with amendments in 2007 and 2008)
- Terrorism (Finance) Act 2009
The Isle of Man was the first of the UK offshore islands to adopt these pieces of legislation, which are modelled on those of the UK.