Gibraltar Sees Surge in Reports of Suspicious Financial Activity Amid Organized Crime Concerns
Record Number of Reports Filed with Gibraltar’s Financial Intelligence Unit
In 2022, the Financial Intelligence Unit (GFIU) in Gibraltar received a staggering 3,503 reports of suspicious financial activity, with the majority linked to the gaming sector. Over half of these reports came from a single gaming company.
Sanctions and Increased Awareness Drive Reporting Surge
The surge in reporting is largely attributed to sanctions imposed by the West in response to Russia’s invasion of Ukraine. Additionally, the GFIU saw significant increases in reports from banking and trust and company service providers, with 60% and 95% year-on-year increases respectively.
Common Suspected Criminal Activities
The most common suspected criminal activities reported include:
- Money laundering
- Fraud
Suspicion is often raised due to inadequate due diligence or failure to provide sufficient information.
GFIU’s Project Nexus Outreach Program
The GFIU attributed the increase in reporting to its Project Nexus outreach program, which aims to enhance awareness on money laundering, terrorist financing, human trafficking, and proliferation of weapons of mass destruction.
Director’s Statement
In a statement, the GFIU’s Director, Edgar Lopez, praised the unit’s achievements, saying it had learned much during the post-observation period and acted with agility to meet recommendations. He highlighted the importance of strategic analysis in better understanding evolving criminal methods and vulnerabilities exploited by terrorists.
Financial Liaison & Intelligence Network (FLINT)
The report also highlights the successful establishment of FLINT, a public-private partnership aimed at combating money laundering, terrorist financing, and proliferation financing. This partnership has been strengthened through a memorandum of understanding with the UK’s Joint Money Laundering Intelligence Task Force (JMLIT+).
Minister’s Praise
Gibraltar’s Minister for Justice, Samantha Sacramento, praised the GFIU’s high standard of work and dedication to combating economic crime. She expressed satisfaction with its accomplishments in 2022, particularly in strategic analysis, international cooperation, and outreach.
Second Three-Year Strategic Plan
The GFIU has also published its second three-year strategic plan, which outlines its objectives and priorities for this period. The plan focuses on four interconnected high-level priorities, known as the “four Es,” which describe how it intends to achieve its goals. The Minister expressed her commitment to supporting the GFIU with its new roadmap.
Establishment of GFIU
Established in January 1996, the GFIU aims to facilitate the receipt, analysis, and dissemination of suspicious transaction reports or suspicious activity reports from financial and other institutions.