FATF Recommends Improvements to Combat Money Laundering in Gibraltar
Gibraltar has been deemed “largely compliant” by the Financial Action Task Force (FATF) in its latest report, highlighting areas where the territory can improve its efforts to combat money laundering and terrorist financing.
FATF Recommendations: A Set of Standards for Anti-Money Laundering Regulations
The FATF recommendations are a set of standards used to assess countries’ compliance with anti-money laundering regulations. The ratings range from “compliant” (C) to “non-compliant” (NC). Gibraltar received mostly “largely compliant” or “partially compliant” ratings across the 40 recommendations, indicating that while it has made significant progress, there is still room for improvement.
Areas for Improvement
The report highlights several areas where Gibraltar can strengthen its defenses against money laundering and terrorist financing:
- Improving national cooperation and coordination with other authorities
- Strengthening its regime for confiscation and provisional measures
- Enhancing its approach to targeted financial sanctions related to terrorism and terrorist financing
- Improving requirements for correspondent banking and money or value transfer services
Partial Compliance in Certain Areas
Gibraltar was found to be partially compliant in the following areas:
- Targeted financial sanctions related to terrorism and terrorist financing
- Requirements for correspondent banking and money or value transfer services
- Regime for reporting suspicious transactions
Strengths
On the other hand, Gibraltar received high ratings in areas such as:
- Regime for financial institution secrecy laws
- Customer due diligence
- Internal controls
Gibraltar was also found to be compliant in its powers of supervisors and law enforcement authorities.
Importance of Continued Efforts
The FATF report highlights the importance of continued efforts by Gibraltar to strengthen its anti-money laundering defenses and improve its compliance with international standards. With these recommendations, Gibraltar can further enhance its reputation as a reliable and transparent financial center.