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Gibraltar Financial Intelligence Unit Issues Guidance on Compliance with Financial Sanctions

In an effort to ensure the financial sector’s compliance with international obligations, the Gibraltar Financial Intelligence Unit (GFIU) has issued guidance on how insurance companies, lawyers, and import/export businesses can navigate the complex landscape of financial sanctions.

Overview

The guidance is general in nature and does not constitute legal advice. It outlines the GFIU’s understanding of the obligations under financial sanctions, as well as its approach to licensing and compliance issues that Gibraltar’s competent authorities may take.

Insurance Sector

In the insurance sector, the guidance clarifies who is responsible for ensuring sanctions compliance:

  • Insurers, reinsurers, and underwriters are accountable for complying with sanctions.
  • Agents and brokers acting on behalf of insurers are also held accountable.

The guidance addresses specific scenarios, such as:

  • Providing pensions and related products to an employer without knowing the relevant employees.
  • Dealing with a designated person after agreeing to insure them.

In the legal sector, the guidance provides clarity on issues such as:

  • Providing legal advice or acting for a designated person.
  • Applying for a licence.
  • Freezing client funds.
  • Licensing fees and disbursements.
  • Scenarios where court orders conflict with sanctions obligations.

Import/Export Sector

The guidance highlights the importance of export control licences and financial sanctions in the import/export sector:

  • Even if goods are not subject to trade controls, financial sanctions may still apply.

Compliance for Non-Governmental Organizations/Non-Profit Organizations (e.g., Charities)

The guidance also provides an overview of the compliance requirements for non-governmental organizations and non-profit organizations operating in Gibraltar.

Conclusion

Overall, the GFIU’s guidance aims to provide a comprehensive framework for Gibraltar-based businesses to comply with financial sanctions and avoid penalties. While it is not intended to be legal advice, it serves as a valuable resource for those seeking to navigate the complex landscape of international sanctions.