Gibraltar Improves Compliance with Anti-Money Laundering and Counter-Terrorist Financing Standards

Strengthening its AML/CFT Framework

In a bid to strengthen its anti-money laundering (AML) and counter-terrorist financing (CFT) framework, Gibraltar has made significant improvements in addressing deficiencies identified by international authorities.

Addressing Concerns from the Financial Action Task Force (FATF)

The FATF, an intergovernmental organization that sets global standards for AML/CFT, had previously expressed concerns over Gibraltar’s lack of sanctions for non-compliance with requirements related to beneficial ownership (BO) information. Specifically, the FATF noted that corporations and legal entities incorporated in Gibraltar were not required to maintain adequate, accurate, and current BO information.

Regulatory Framework Amendments

To address these concerns, Gibraltar has made multiple amendments to its regulatory framework. The most significant changes include:

• Amendments to the Trustees Act: All types of trusts are now required to obtain and hold adequate, accurate, and current BO information.
• Changes to Regulation 12(1A) of the Regulatory Bodies (Reporting Obligations) Regulations: This regulation applies to express trusts as well as corporate and legal entities.
• New sections added to the Trustees Act: Trustees must disclose their status to financial institutions and hold basic information on service providers to the trust.
• Amendments to Regulations 42 and 45 of the Regulatory Bodies (Reporting Obligations) Regulations: These regulations provide adequate civil and criminal sanctions for non-compliance with BO reporting requirements.

Re-Rating from “Partially Compliant” to “Compliant”

These changes have addressed all deficiencies identified in the FATF’s previous report, earning Gibraltar a re-rating from “Partially Compliant” to “Compliant” under Recommendation 25.

Improvements in Relation to Recommendation 26

Additionally, Gibraltar has also made improvements in relation to Recommendation 26, which concerns the suitability of beneficial owners and others who may exert significant influence over financial institutions. The island nation has introduced new regulations that require:

• Pre-appointment approval for individuals responsible for certain functions within firms
• Enhanced information gathering and investigatory powers for regulatory authorities

Commitment to Strengthening its AML/CFT Framework

These efforts demonstrate Gibraltar’s commitment to strengthening its AML/CFT framework and ensuring the integrity of its financial system.