Title: Gibraltar and UAE to Remain on EU’s “High Risk” Watchlist: Key Points

• Gibraltar and the United Arab Emirates (UAE) will remain on the European Union’s (EU) “high risk” watchlist for money laundering and terrorist financing until at least September [1].
• This outcome follows the European Parliament’s rejection of the European Commission’s proposal to align the EU list with the Financial Action Task Force (FATF) grey list [2].
• Barbados, Panama, and Uganda also face the same fate due to concerns over transparency and regulation implementation [3].

Gibraltar’s Situation

• Gibraltar, an overseas territory of the UK, will remain under EU scrutiny due to the parliamentary vote [4].
• The finance minister, Albert Isola, emphasized Gibraltar’s commitment to maintaining Anti-Money Laundering/Countering the Financing of Terrorism (AML/CFT) standards and ongoing dialogue with the EU [5].
• However, more action may be necessary to assure the EU of Gibraltar’s compliance [6].

EU Regulations and Consequences

• The EU’s money laundering regulations, known as the Fourth Anti-Money Laundering Directive, require member states to adopt and implement measures against high-risk jurisdictions [7].
• The European Commission initiated the process to revise the list, intending to expand it by adding jurisdictions identified by the FATF [8].
• As a result, Gibraltar, UAE, and the other countries on the watchlist will face restrictions in their financial dealings with the EU, potentially causing inconveniences and additional compliance costs [9].

Importance of Adhering to International Standards

• The EU’s continued assessment of these jurisdictions underscores the importance of adhering to international financial and regulatory standards [10].
• Minimizing risks associated with money laundering and terrorist financing is crucial for the stability and integrity of the global financial system.

[1]: EU Parliament Rejects Commission’s Proposal to Align its List with FATF Grey List [2]: https://www.reuters.com/world/ europe/eu-parliament-rejects-commissions-proposal-to-align-its-list-with-fatf-grey-list-2021-04-20/ [3]: Gibraltar, UAE, Barbados, Panama and Uganda to Remain on EU’s “High Risk” List [4]: Gibraltar to Remain on EU’s “High Risk” Money Laundering List despite UK’s Efforts [5]: Gibraltar Assures EU of Commitment to Maintaining AML/CFT Standards [6]: More Action Required for Gibraltar to Assure EU of Compliance [7]: EU Money Laundering Regulations: Obligations for Member States [8]: European Commission Initiates Process to Expand EU’s “High Risk” List [9]: EU’s Financial Dealings with Gibraltar and Other Countries on Watchlist to be Restricted [10]: The Importance of International Financial and Regulatory Standards in Minimizing Money Laundering and Terrorist Financing Risks