Gibraltar’s Sanctions Regime Tightens Up with New Legislation and Automatic Enforcement

Gibraltar has recently introduced new legislation and automatic recognition and enforcement of UN, UK, and EU sanctions to strengthen its international reputation for effective sanctions implementation.

Automatic Recognition and Enforcement

The Sanctions Act 2019 provides for the automatic recognition and enforcement of these sanctions, marking a significant shift in Gibraltar’s sanctions regime. This means that any new sanctions imposed by the United Nations, the United Kingdom, or the European Union will be automatically applied in Gibraltar.

Designated Sanction Targets

The law also grants the relevant competent authorities in Gibraltar the power to designate separate sanctions targets if necessary. Although no such designations have been made thus far, notifications of sanction notices will be communicated to all THEMIS users via its Notice Board.

Automatic Binding by UN Sanctions

Gibraltar is automatically bound by UN sanctions, and a comprehensive list of financial sanctions targets implemented by HM Treasury’s Office of Financial Sanctions Implementation (OFSI) can be accessed online. The UK’s implementation of sanctions includes specific exemptions and licensing powers that allow otherwise prohibited transactions to take place in certain circumstances.

Handling Enquiries

The Competent Authority is responsible for handling enquiries related to asset freezing or other financial sanctions, while the Government of Gibraltar’s Financial Intelligence Unit (GFIU) oversees reports of frozen funds and economic resources, as well as notifications of credits to frozen accounts. The GFIU can be contacted through its online reporting system (THEMIS).

Export Controls and Sanctions-Related Queries

For more information on export controls related to sanctions, interested parties can reach out to HM Customs (Gibraltar), while immigration sanctions-related queries should be directed towards the Borders and Coastguard Agency.

Licensing Powers

The Gibraltar competent authority has also introduced licensing powers under section 10 of the Sanctions Act 2019, allowing it to issue licences in specific circumstances. For sanctions exemption licence applications, contact the competent authority at sanctions.licence@gibraltar.gov.gi.

By introducing these new measures, Gibraltar aims to further enhance its reputation as a jurisdiction that effectively implements international sanctions and maintains a robust anti-money laundering and combating terrorist financing framework.