Gibraltar Sees Improvement in Sanctions List Status Following FATF Update

The Financial Action Task Force (FATF) has recognized Gibraltar’s efforts to improve its anti-money laundering and combating financing of terrorism (AML/CFT) regime, reducing the number of points on which it is under increased monitoring.

Background

In June 2022, the FATF identified two key areas where Gibraltar required improvement:

• Regulatory sanctions
• Final confiscations

However, following an update report submitted by HM Government of Gibraltar in December 2022, the FATF has acknowledged that progress has been made in these areas.

Progress Made

Supervisors in Gibraltar are now using a range of effective, proportionate, and dissuasive sanctions for AML/CFT breaches, meeting one of the conditions set out by the FATF. While Gibraltar still needs to pursue more final confiscation judgments commensurate with the risk and context of the jurisdiction, this has reduced the number of points on which it is under increased monitoring from two to one.

Government Response

HM Government of Gibraltar welcomes this development and notes that its commitment to implementing the FATF Action Plan has been recognized by the international standard-setting body. The government will continue to work closely with the FATF and report on further progress in May 2023, as required.

The Chief Minister of Gibraltar praised the efforts of regulatory authorities and law enforcement agencies in meeting the requirements of the Action Plan, saying:

“We are proud of our relationship with the FATF and appreciate the recognition of our commitment to implementing the necessary reforms. Our regulators and law enforcement agencies have worked tirelessly to address the areas identified by the FATF, and we look forward to continuing this progress.”

Positive Implications

This development is seen as a positive step for Gibraltar’s financial sector, which has long been committed to maintaining high standards in AML/CFT. The reduction in points under increased monitoring reflects the jurisdiction’s ongoing efforts to strengthen its regulatory framework and enhance its international reputation.

• Enhanced international reputation: Gibraltar’s commitment to implementing the FATF Action Plan has been recognized by the international standard-setting body, which is likely to enhance its reputation as a well-regulated financial center.
• Increased confidence: The reduction in points under increased monitoring may increase confidence among investors and businesses that operate in Gibraltar, making it a more attractive location for financial services companies.
• Improved competitiveness: By strengthening its regulatory framework and enhancing its international reputation, Gibraltar may be able to compete more effectively with other financial centers in the region.