Gibraltar moves back to the ‘whitelist’ of internationally compliant jurisdictions
The Financial Action Task Force (FATF), the global anti-money laundering watchdog, announced the welcome news on 23 February that Gibraltar had been removed from its ‘grey list’ of jurisdictions subject to increased monitoring due to significant progress in improving its anti-money laundering and countering the financing of terrorism regime.
This recognition reaffirms Gibraltar’s status as a responsible and transparent financial centre, dedicated to upholding the highest standards of compliance with its international obligations.
“This is very welcome news, and I am delighted that our continued and ongoing work and political commitment to future development has been recognised,” said Chief Minister Fabian Picardo.
“I am grateful to all the agencies and authorities that have contributed to this work as well as the private sector that has wholeheartedly joined us in our fight against economic crime. Gibraltar’s FATF ‘whitelisting’ not only enhances our reputation, but also strengthens our position as a trusted and compliant international financial centre.”
Grey-listed jurisdictions have committed to implement an Action Plan to resolve swiftly the identified strategic deficiencies in their AML/CFT regimes within agreed timeframes and are subject to the FATF’s increased monitoring process.
Gibraltar was added to the grey list in June 2022 after complying with all but two of the 98 recommendations made in a mutual evaluation report by MONEYVAL, the EU’s monitoring body for AML/CFT compliance. The Gibraltar government made a high-level political commitment to strengthen the effectiveness of its AML/CFT regime to address the deficiencies identified.
At its October 2023 plenary, the FATF made the initial determination that Gibraltar had substantially completed its Action Plan and therefore warranted an on-site assessment to verify that the implementation of AML/CFT reforms had begun and was being sustained, and that the necessary political commitment remained in place to sustain implementation in the future.
As a result of this on-site assessment, the FATF concluded that Gibraltar had met the commitments in its Action Plan, including by:
- Applying effective, proportionate, and dissuasive sanctions for AML/CFT breaches in non-bank financial institutions and Designated Non-Financial Businesses & Professions (DNFBP) sectors.
- Pursuing final confiscation judgments commensurate with the risk and context of Gibraltar.
Gibraltar is therefore no longer subject to the FATF’s increased monitoring process but will continue to work with MONEYVAL to sustain its improvements in its AML/CFT system.
The FATF also removed Barbados, Uganda and the United Arab Emirates (UAE) from its grey list but, following review, it decided to add Kenya and Namibia.
“Gibraltar should be congratulated for taking strong and credible steps to ensure its speedy removal from the grey list,” said Lynette Chaudhary, Director of Gibraltar-based Sovereign Tax Services. “The most significant implication for grey-listed jurisdictions is the reputational damage to the country because its effectiveness in combatting financial crime is deemed to be below international standards. This can also lead to consequential actions in respect of cross-border transactions”.
“The government of Gibraltar aims to promote and streamline business activities by fostering an environment characterised by an ‘ease of doing business,’ favourable tax conditions, a legal system based on common law, competitive operational expenses, a skilled and adaptable workforce, and a well-established infrastructure.”
If you are interested in setting up a business in, or moving to Gibraltar, Sovereign offer a comprehensive suite of company incorporation, administration and residency services to aid you on your journey.
