Financial Crime World

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FATF Recommendations: Gibraltar Takes Steps to Implement Amendments

Gibraltar has made significant progress in implementing the Fourth Money Laundering Directive (4MLD) and related anti-terrorism measures. The country has adopted a more granular approach to specific requirements, ensuring compliance with international standards.

Implementing Central Beneficial Ownership Register

One of the key changes brought about by 4MLD is the requirement for EU Member States to maintain a central beneficial ownership register. Gibraltar has transposed this requirement into local legislation through various amendments:

  • Proceeds of Crime Act (Amendment) Act 2017
  • Register of Ultimate Beneficial Owners Regulations 2017

The Minister has also appointed the Finance Centre Director as the Registrar of Ultimate Beneficial Owners under the Register of Ultimate Beneficial Owners Regulations 2017, exercising powers conferred by Regulation 5 of those regulations.

Anti-Terrorism Measures

Gibraltar’s anti-terrorism measures include:

  • Terrorism Act 2005 (TA): establishes several offences related to engaging in or facilitating terrorism
    • Provides for a defence against most of these offences if a person discloses their suspicion that money or property is terrorist-related and obtains consent from the Gibraltar Financial Intelligence Unit (GFIU)
  • Terrorist Asset-Freezing Regulations 2011 (TAFR): imposes restrictive measures on certain individuals and entities to combat terrorism
  • Counter Terrorism Act 2010 (CTA): imposes countermeasures against countries, territories, governments, and individuals in connection with terrorist financing, money laundering, and proliferation of weapons of mass destruction

Money Laundering Offences

The Proceeds of Crime Act 2015 (POCA) establishes various money laundering offences:

  • Principal money laundering offences
  • Failure to report suspected money laundering
  • Tipping off about a money laundering disclosure or investigation

POCA applies to all persons, with certain exceptions for professionals who are engaged in activities in a relevant financial business.

Key Activities and Professional Services

Under section 9 of POCA, key activities that would cause an individual to operate in a relevant financial business include:

  • Providing services such as notary public services
  • Independent legal professional services
  • Trust or company service provider services

Part 3 of POCA aims to limit the use of professional services for money laundering by requiring professionals to know their clients and monitor the use of their services.

The Gibraltar government has issued Guidance Notes for the Legal Profession, outlining the scope of customer due diligence and anti-money laundering requirements for various professions:

  • Auditors
  • Insolvency practitioners
  • External accountants
  • Tax advisers
  • Real estate agents
  • Trust or company service providers
  • High-value dealers
  • Casinos
  • Other financial services providers

These efforts demonstrate Gibraltar’s commitment to implementing international standards on anti-money laundering and combating the financing of terrorism.