Terrorist Financing Methods in Gibraltar Exposed: EU’s High-Risk List Reveals Concerns
European Commission Updates High-Risk Countries List, Highlights Gibraltar Concerns
The European Commission has recently updated its list of high-risk third countries with strategic deficiencies in their anti-money laundering (AML) and counter-terrorism financing (CTF) regimes. The list highlights concerns about terrorist financing methods in Gibraltar, a British overseas territory on the Iberian Peninsula.
Gibraltar Identified as High-Risk Jurisdiction
Gibraltar has been identified as having strategic deficiencies in its AML/CTF regime, which means that banks and other financial institutions in the EU are required to exercise increased caution when dealing with businesses or transactions involving Gibraltar-based entities. This designation is based on recommendations from the Financial Action Task Force (FATF), an international organization that sets standards for combating money laundering and terrorist financing.
Commission’s Methodology for Identifying High-Risk Countries
The Commission’s list of high-risk countries is based on a range of criteria, including:
- Weak AML/CFT laws or ineffective enforcement mechanisms
- Significant threats to the EU’s financial system
- Economic ties with the EU
- Magnitude of their financial sector
Staged Approach for Listing High-Risk Countries
The listing process involves a staged approach, with pre-assessment, assessment, listing, and monitoring of high-risk countries. The Commission’s methodology aims to ensure a fair and transparent process in identifying third countries that pose significant threats to the EU’s financial system.
Other European Countries on the High-Risk List
In addition to Gibraltar, other European countries have also been identified as having strategic deficiencies in their AML/CTF regimes, including:
- Barbados
- Burkina Faso
- Cameroon
- Democratic Republic of the Congo
- Haiti
- Iran
- Jamaica
- Mali
- Myanmar
- Nigeria
- North Korea
- Panama
- Philippines
- Senegal
- South Africa
- South Sudan
- Syria
- Tanzania
- Trinidad and Tobago
- Uganda
- United Arab Emirates
- Vanuatu
- Vietnam
- Yemen
EU’s Efforts to Combat Terrorist Financing Methods
The Commission’s efforts to combat terrorist financing methods in Gibraltar and other high-risk countries are part of its broader strategy to protect the integrity of the EU’s financial system and promote sustainable development. The updated list highlights the need for increased vigilance and cooperation among EU Member States to prevent and counter terrorist financing.