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Gibraltar Financial Regulator Hands Down Penalties for AML/CFT Failures

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The Gibraltar Financial Services Commission (GFSC) has taken action against several businesses in the real estate sector for failing to comply with anti-money laundering and counter-terrorist financing (AML/CFT) regulations.

GFSC Conducts Onsite Visits

The GFSC conducted onsite visits at various real estate companies, including:

  • K.S. Investment (Gibraltar) Limited
  • Century 21
  • Property Promise (HDM Consultants)
  • J. Boyd Estate Agency Limited
  • 1704 Luxury Real Estate

Breaches Identified

The findings revealed a range of breaches, including:

  • Failure to collect proof of beneficial ownership
  • Inadequate customer due diligence
  • Poor record-keeping practices
  • Failure to comply with Targeted Financial Sanctions (TFS) obligations
  • Insufficient knowledge and training in AML/CFT matters

Penalties Imposed

The GFSC imposed the following penalties:

  • K.S. Investment (Gibraltar) Limited: £12,500 fine and a 12-month ban from managerial positions for one of its managers.
  • Century 21: £1,000 fine
  • Property Promise (HDM Consultants): £1,100 fine
  • J. Boyd Estate Agency Limited: £1,500 fine
  • 1704 Luxury Real Estate: £3,000 fine

Action Plans Ordered

The GFSC also ordered the companies to implement action plans to rectify the breaches and deficiencies identified during the onsite visits.

Regulatory Action

The following regulatory actions were taken:

  • K.S. Investment (Gibraltar) Limited: Financial Sanction pursuant to Regulation 18 and an action plan to rectify breaches and deficiencies.
  • Century 21, Property Promise (HDM Consultants), J. Boyd Estate Agency Limited, and 1704 Luxury Real Estate: Financial Sanctions pursuant to Regulation 18 and action plans to rectify breaches and deficiencies.

Date of Enforcement

The enforcement actions were taken on the following dates:

  • K.S. Investment (Gibraltar) Limited: November 14, 2023
  • Century 21: November 2, 2023
  • Property Promise (HDM Consultants): November 21, 2023
  • J. Boyd Estate Agency Limited: February 5, 2024
  • 1704 Luxury Real Estate: March 29, 2024

Note

The GFSC did not disclose the amounts of fines for some enforcement actions, citing that they were not proportionate to disclose.