Gibraltar Strengthens Anti-Money Laundering Regime with New Beneficial Ownership Regulations

Introduction

Gibraltar has taken significant steps to combat money laundering and maintain its reputation as a responsible financial center by introducing new regulations that require the disclosure of beneficial ownership information for all companies and trusts registered in the territory.

Key Features of the New Regulations

• The Register of Ultimate Beneficial Owners Regulations 2017 came into effect on June 26th, 2023, and are designed to meet international anti-money laundering (AML) obligations and best practices.
• All corporate entities and legal persons incorporated in Gibraltar must obtain and maintain accurate information on their beneficial owners, including:
  • Identity
  • Date and place of birth
  • Residential address
  • Other personal information
• Express trusts are also subject to the same requirements, with settlors, trustees, protectors, beneficiaries, and any natural person exercising effective control over the trust required to provide detailed information.

Compliance Requirements

• Entities must collect and submit beneficial ownership data to the Registrar of Ultimate Beneficial Owners by September 30th.
• Companies and trusts must maintain up-to-date information and notify any changes to the beneficial ownership structure or details of beneficial owners to the Registrar.

Access to the Register

Access to the Register may be granted to:

• Authorities involved in AML activities
• Obligated entities
• Individuals with a legitimate interest in accessing the information

Beneficial owners have the right to request that their personal details be withheld from disclosure if they can demonstrate exceptional circumstances, such as exposure to risk or vulnerability.

Enforcement and Penalties

Compliance with the regulations is strictly enforced, with restrictions on beneficial interests being imposed for non-compliance, including transfer or disposal of the interest. Courts also have the power to order the sale of the interest in cases where companies fail to provide information or submit false data. Failure to comply with the regulations can result in fines and imprisonment.

Conclusion

The new regulations are a significant development in Gibraltar’s efforts to combat money laundering and maintain its reputation as a responsible financial center. As a key player in the global finance industry, Gibraltar has set an important precedent for other jurisdictions to follow.