Financial Crime World

Compliance Risk Assessment Tools Crucial as Gibraltar Added to UK’s High-Risk Jurisdictions List

The United Kingdom has recently updated its list of high-risk jurisdictions for money laundering, and Gibraltar has been added to the list. This means that regulated businesses operating in Gibraltar must take enhanced measures to mitigate compliance risk.

FATF Statement

According to a statement from the Financial Action Task Force (FATF), Gibraltar made a high-level political commitment in June 2022 to strengthen its anti-money laundering (AML) and counter-terrorist financing (CFT) regime. While progress has been made, more work remains to be done, including ensuring that supervisory authorities for non-bank financial institutions and designated non-financial businesses and professions (DNFBPs) use effective sanctions for AML/CFT breaches.

Updated List of High-Risk Jurisdictions

The updated list of high-risk countries also includes other jurisdictions such as:

  • Barbados
  • The Cayman Islands
  • Panama
  • Morocco
  • The Philippines
  • The United Arab Emirates

These countries have been identified by the FATF as having significant shortcomings in their AML/CFT controls.

Why Compliance Risk Assessment Tools Matter

In today’s global financial landscape, compliance risk assessment tools are more crucial than ever. Failing to identify and mitigate risks can result in serious breaches and reputational damage. Regulated businesses operating in these high-risk jurisdictions must take a proactive approach to assessing and managing their compliance risk.

What You Can Do Now

To stay ahead of the curve, it is essential to:

  • Renew practice-wide and country risk assessments, particularly for countries on the list
  • Review client lists for those who require ongoing monitoring
  • Strengthen sanctions screening processes and ensure sanctions checks are regularly undertaken
  • Update sanctions training for all staff
  • Review sanctions policy templates with our free updated version

By taking these steps, regulated businesses can reduce their exposure to compliance risk and maintain a strong reputation in the financial sector.