Financial Crime World

Financial Crime Threatens Economic Stability in Gibraltar: A Wake-Up Call for Change

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The scourge of financial crime continues to wreak havoc on economies worldwide, including Gibraltar’s. Money laundering, fraud, human trafficking, sanctions, and terrorism are just a few examples of the widespread harm caused by these illegal activities.

The Pressure Mounts

Institutions in Gibraltar are under intense pressure from governments, regulators, law enforcement, shareholders, and customers to safeguard their clients and society. Despite significant investments in time, resources, and money, outcomes against criminals remain woefully inadequate.

Drivers of Change

The situation is further complicated by a plethora of drivers of change, including:

  • An increasingly polarized geopolitical landscape
  • The climate crisis
  • The rapid transformation of the financial services industry

These challenges are not unique to Gibraltar. New players, new business models, and evolving customer expectations are forcing institutions to adapt rapidly.

Technological Disruptions

Technological disruptions such as faster payments, digital currencies, and AI are altering the way institutions operate and enabling organized criminal networks to scale and accelerate their attacks.

A “Reset Moment”

The financial services industry in Gibraltar has reached a “reset moment,” a time to reassess its response to financial crime. Our research highlights six key changes needed to move towards a more dynamic, effective, and efficient model:

  • Implementing a risk-based approach to anti-money laundering (AML) and combating the financing of terrorism (CFT)
  • Enhancing customer due diligence and ongoing monitoring
  • Improving information sharing and cooperation between institutions and law enforcement agencies
  • Increasing transparency and reporting requirements
  • Utilizing advanced analytics and artificial intelligence to detect suspicious activity
  • Developing a culture of compliance within institutions

A Call for Collaboration

The implementation of these changes requires a fundamental rethink of current approaches to tackling financial crime. We believe that Deloitte Advisory in the Crown Dependencies and Gibraltar can play a vital role in helping institutions navigate this transformation, leveraging our expertise in:

  • Risk and regulatory compliance
  • Internal audit
  • Cyber and digital forensics
  • Connection to the broader UK network

By working together, we can create a more dynamic, effective, and efficient model for tackling financial crime in Gibraltar.