Gibraltar Improves Compliance with International Agreements on Money Laundering and Terrorist Financing
Strengthened Measures to Combat Financial Crimes
A recent follow-up report by Council of Europe experts has revealed that Gibraltar has significantly strengthened its measures to combat money laundering and terrorist financing. According to the report, Gibraltar has aligned its legislation with relevant international agreements, as required by Recommendation 36 of the Financial Action Task Force (FATF).
Improved Compliance Rating
As a result of these efforts, MONEYVAL, the Committee of Experts on the Evaluation of Anti-Money Laundering Measures and the Financing of Terrorism, has upgraded Gibraltar’s rating from “Partially Compliant” to “Largely Compliant” with this recommendation. The follow-up procedure against Gibraltar under MONEYVAL’s 5th round of evaluations has thus been terminated.
Legislative Changes Driving Improvement
The improvement in Gibraltar’s compliance is attributed to its adoption of legislative acts and other measures to fully implement the UN convention against the illicit traffic in narcotic drugs and psychotropic substances, which was extended to the territory by the United Kingdom in December 2019. Specifically:
- Gibraltar has implemented new legislation to prevent money laundering and terrorist financing
- Strengthened regulations for financial institutions and other relevant sectors
- Improved cooperation between national authorities and international organizations
Current Compliance Status
Out of 40 recommendations from FATF, Gibraltar currently has:
- 23 recommendations rated “Compliant”
- 17 recommendations rated “Largely Compliant”
MONEYVAL’s Role in Assessing Compliance
MONEYVAL is a monitoring body of the Council of Europe responsible for assessing compliance with international standards to counter money laundering, terrorist financing, and proliferation of weapons of mass destruction. The organization evaluates 33 states and territories, making recommendations to national authorities on necessary improvements to their anti-money laundering and counter-terrorist financing systems.
Significance for Gibraltar
The improved rating reflects Gibraltar’s commitment to combating financial crimes and its efforts to strengthen its regulatory framework. This development is significant for the territory, which is a key financial hub in the Mediterranean region.
Accessing the Full Report
The full report can be accessed at [link].