Gibraltar’s Compliance Risk Assessment Tools: A Must-Know for Businesses

Gibraltar is under obligation to consider the findings of the European Union’s Supra National Risk Assessment (NRA) in its own risk assessments, following the implementation of the 4th Anti-Money Laundering Directive. The latest updated NRA was issued in August 2020, and its purpose is to identify threats and vulnerabilities in money laundering, terrorist financing, and proliferation financing.

What is the National Risk Assessment?

The NRA provides a comprehensive strengths-weaknesses analysis of Gibraltar’s risk profile, identifying existing and future risks that businesses need to be aware of. A copy of the National Risk Assessment can be found online for further reference.

Obligations for Private Companies

For private companies, the Proceeds of Crime Act requires Relevant Financial Businesses (RFBs) to consider the NRA in their own risk assessment frameworks. This means mapping their own risk register against the NRA findings and ensuring that their systems of controls are commensurate with the risks present in Gibraltar.

Implications for Simplified or Enhanced Customer Due Diligence

POCA does not permit RFBs to arrive at a conclusion on risk that is incompatible with the NRA findings, which has significant implications for companies seeking to apply simplified or enhanced Customer Due Diligence (CDD). Compliance officers and risk managers can use the NRA findings to identify high-risk products, services, and sectors, making it easier to detect suspicious transactions and focus their attention on areas of higher risk.

Conclusion

In conclusion, all businesses operating in Gibraltar should take into account the updated National Risk Assessment when conducting their own risk assessment frameworks. This will ensure that their systems of controls are commensurate with the risks present in the jurisdiction.

Assistance with Compliance Risk Assessments

If you have any questions regarding compliance risk assessments or require assistance, TAG Consultancy is happy to help. For a full list of our compliance services, please [click here](insert link).

Key Terms

• Money Laundering: The illegal process of concealing funds generated by a criminal activity.
• Terrorist Financing: The provision of funds for terrorist activities.
• Proliferation Financing: The act of providing funds or financial services that support the manufacture, acquisition, possession, development, export, trans-shipment, brokering, transport, transfer, stockpiling, or use of weapons of mass destruction.