Gibraltar Removed from FATF ‘Grey List’ After Successful Action Plan Implementation

Gibraltar has made significant strides in its efforts to combat money laundering and terrorist financing, according to the Financial Action Task Force (FATF), a global watchdog that monitors anti-money laundering (AML) and combating the financing of terrorism (CFT) policies.

A Major Milestone for Gibraltar’s Business Environment

Following a recent FATF plenary meeting in October 2023, Gibraltar was deemed to have substantially completed its action plan, paving the way for a potential removal from the ‘grey list’ of jurisdictions subject to increased monitoring. The final onsite inspection is expected to take place in the coming months, with confirmation of removal slated for February 2024.

Key Progress Made by Gibraltar

• Gibraltar’s inclusion on the grey list in June 2022 was due to perceived deficiencies in pursuing regulatory sanctions and final confiscation judgments.
• The jurisdiction has since made notable progress in addressing these issues, implementing reforms aimed at strengthening its AML/CFT framework.
• The FATF praised Gibraltar for applying effective sanctions for AML/CFT breaches in non-bank financial institutions and designated non-financial businesses and professions sectors, as well as pursuing final confiscation judgments commensurate with the risk and context of the jurisdiction.

Minister’s Response

“This is a highly positive outcome for Gibraltar, and we are grateful to the dedicated authorities who have worked tirelessly to meet the action points,” said Minister for Justice, Trade and Industry Nigel Feetham. “We now look forward to welcoming inspectors for the onsite visit in the coming months and the subsequent confirmation by FATF of our removal from the grey list.”

Potential Benefits of Removal

The potential removal from the grey list is seen as a major boost for Gibraltar’s business environment, with the jurisdiction continuing to attract companies and individuals seeking:

• A favourable tax regime
• Common law legal system
• Competitive operating costs
• Highly trained workforce

Sovereign Trust (Gibraltar Limited) Commends Gibraltar’s Progress

Managing Director Nico van Zyl applauded Gibraltar’s swift response to the FATF action points, highlighting the close collaboration between the jurisdiction and the international standard-setting organisation. “This is a mutually beneficial relationship aimed at upholding the highest standards within the jurisdiction,” Van Zyl said.

Government’s Efforts to Encourage Business

As Gibraltar moves closer to being removed from the grey list, the government seeks to encourage and facilitate business, creating an environment that affords excellent ’ease of doing business’ and supports companies in setting up operations within the jurisdiction. Sovereign Trust (Gibraltar Limited) offers a comprehensive suite of company incorporation, administration, and residency services to aid businesses on their journey.