Gibraltar’s Financial Intelligence Unit Plays Pivotal Role in Combating Economic Crime

Gibraltar’s Financial Intelligence Unit (GFIU) has released its Annual Report, providing an overview of the unit’s work during 2022. The report highlights the unit’s strategic analysis spanning from 2019 to 2022, which aims to better understand the evolving methods and vulnerabilities exploited by criminals and terrorists.

Challenges and Achievements

According to GFIU Director Edgar Lopez, the unit has been presented with several challenges in 2022 but has achieved results through innovation and technology. “We have learned a lot during the FATF post-observation period and acted with agility to meet the recommendations,” said Lopez. “We took decisive steps to align our structure to meet demand and new challenges, particularly in strategic analysis and data quality analysis.”

Technological Advancements

The GFIU has leveraged technological advancements and new software applications to enhance internal processes, intelligence report productivity, and strategic analysis. A significant milestone in the Report is the successful establishment of the Financial Liaison & Intelligence Network (FLINT), a Public-Private Partnership aimed at combating Money Laundering, Terrorist Financing, and Proliferation Financing.

International Cooperation

The partnership has been further strengthened through a Memorandum of Understanding with the UK’s Joint Money Laundering Intelligence Task Force (JMLIT+). This collaboration enhances cooperation, facilitates the exchange of information and intelligence, and harnesses collective knowledge and experience to create an inhospitable environment for criminals involved in serious and organized crime in both Gibraltar and the UK.

Strategic Analysis Report

The report highlights an increase in Suspicious Activity Reports (SARs) submitted by certain sectors, such as banks and trust and corporate service providers. This increase may be attributed to the GFIU’s outreach program, Project Nexus, which recently won HMGoG’s Project Achievement Award. Additionally, the GFIU has expanded its workshops on various economic crime topics through an e-learning platform, boasting over 500 users.

Key Findings

• There has been a noteworthy decrease in defensive reporting and an improvement in the percentage of SARs meeting the GFIU’s standards. • Money Laundering and Fraud persist as the most prevalent suspected criminal activities reported. • Suspicion based on adverse open source information and inadequate due diligence or failure to provide due diligence remain the leading grounds for suspicion.

Strategic Plan

The GFIU has also published its second three-year Strategic Plan, outlining the strategic objectives and priorities of the unit. The plan is based on four interconnected high-level priorities, known as the “four E’s,” which describe how it intends to achieve its vision.

Ministerial Praise

Minister for Justice, Samantha Sacramento MP, praised the high standard of the GFIU’s work and its dedication to combating economic crime. She expressed her satisfaction with the unit’s accomplishments in 2022, particularly in strategic analysis, international cooperation, and outreach. The Minister also recognizes the achievements over the last three years through the GFIU’s strategic priorities and will continue to support the unit with its new roadmap.

Background

The GFIU was established in January 1996 with the aim of facilitating the receipt, analysis, and dissemination of suspicious transaction reports or suspicious activity reports from financial and other institutions. The two documents can be found on the following links: Annual Report & Strategic Analysis 2022 and Strategic Plan 2023-26.