Gibraltar Regulates Identity Verification and Anti-Money Laundering Measures
In a move to combat financial crimes, the government of Gibraltar has issued new regulations on identity verification and anti-money laundering (AML) measures. These guidelines aim to ensure that businesses operating in the territory comply with international standards and protect against money laundering and terrorist financing.
Checks on Document Authenticity
According to the new regulations, checks on document authenticity are crucial in verifying identities. This includes verifying security features such as:
- Holograms
- Tapered/crumpled edges
- Doctored elements
- Form inconsistencies
- Document expiration
- MRZ (Machine Readable Zone)
- Reflected colors
- Microprinting
Documents Required for Verification
In Ireland, proof of identity can be established through a valid:
- Passport
- Driver’s license
- National Identity Card
In Gibraltar, proof of address is required, which can be demonstrated through:
- Current utility bill
- Government-issued document
- Bank statement showing the end-user’s address and name
Timing of Verification
Identity verification is not a one-time process but rather requires multiple instances as per regulations. Businesses must apply identity verification procedures when:
- Onboarding new customers
- In certain transactional data scenarios
Politically Exposed Persons and Enhanced Due Diligence Measures
The regulations also require businesses to determine if their customers are:
- Politically exposed persons
- Hold public office
- Exhibit a higher risk profile
Shufti Pro provides an AML screening service that screens ID attributes against global regulatory authorities’ watchlists and domestic databases.
Reliance on External Services
Gibraltar’s regulations allow businesses to seek the services of third-party providers for due diligence measures. However, businesses remain liable for maintaining all compliance and fulfilling AML and KYC obligations.
Record Retention
The regulations require businesses to retain data for at least five years as part of their AML and KYC obligations. In cases where information is processed, collected, and managed by a third-party provider, businesses are liable to collect necessary information without undue delay.
Conclusion
These new regulations aim to strengthen Gibraltar’s financial sector against money laundering and terrorist financing risks. Businesses operating in the territory must ensure compliance with these guidelines to avoid penalties and maintain their reputation.