Customers raise concerns during data collection exercise

Bank responds to criticism

Isle of Man Bank says it's taking action to review the language and tone of its communications with customers during the collection of updated due diligence and tax data from them.

It follows concerns expressed to Manx Radio by a number of longstanding customers over what's been described as the unacceptably aggressive tone of emails, letters and texts.

The customer of one small business on the Island said he’d suffered sleepless nights and anxiety after a threat from the bank to close his business account.

This, he said, was unless specific information relating to ID and proof of address was provided.

The customer claims the information had been sent as requested which had initially been rejected.

He told Manx Radio: “Every time I sent the information, that was requested, it was rejected.

“I had numerous emails, letters and texts asking for info.

“I understand they have to update their records but, as a loyal customer of the bank for over 12 years, I was shocked by the aggressive tone they adopted.

“I have a number of employees and I genuinely feared that if my account was closed I wouldn't be able to pay them.”

Isle of Man Bank's parent company, Royal Bank of Scotland (International), was fined more than £1 million by the Isle of Man Financial Services Authority in February after an inspection by the FSA.

It was carried out in 2021 and found the bank had contravened paragraph seven of the Anti-Money Laundering and Countering the Financing of Terrorism Code 2015.

RBSI was, according to the FSA, unable to demonstrate that its up-to-date customer risk assessment process was brought into use in a timely manner following introduction of the code.

The FSA found that customers were still subjected to a risk rating to a pre-2015 standard during the period.

A mitigating factor in deciding the penalty was that RBSI had engaged promptly and positively with the FSA throughout the matter in a timely and constructive manner.

Responding to Manx Radio over the concerns raised by customers an Isle of Man Bank spokesperson said: “As a regulated financial institution we have an obligation to maintain complete, accurate and up-to-date customer records.

“We are requesting updated customer due diligence and tax data from some of our customers so we can improve our customer experience and better manage our customer data.

“We are here to support our customers and would encourage them to get in touch with us, using the details provided in our communications, if they have any questions or concerns".

It's understood the Bank also taking action to review the language and tone of these communications to ensure they’re as appropriate and customer focussed as possible.