Gibraltar set to be removed from EU AML high-risk jurisdiction list 

Gibraltar has been provisionally delisted from the European Commission’s (EC) list of high-risk jurisdictions for anti-money laundering and counter terrorism financing (AML/CFT).

The decision to remove the British Overseas Territory from the list, which consists of nations that the EC has recognised as having strategic deficiencies in their AML and CFT regimes, was reached with the aid of the Financial Action Task Force (FATF). 

All jurisdictions covered by the EU’s AML framework are expected to “apply enhanced vigilance” when involved in transactions with countries featured on the list. 

The EC noted it works closely with the FATF and took into account the Paris-headquartered watchdog’s own list of “jurisdictions under increased monitoring” in its latest round of delisting.

Gibraltar was removed from the FATF’s grey list after nearly two years in February 2024, having originally been placed on the list in June 2022. 

Eight months on from the FATF’s decision to include Gibraltar, the region noted it had made good progress with an action plan formed in partnership with the FATF, but was kept under review for a further 12 months after the watchdog determined it had complied with all but two of its recommendations. 

The EC outlined that following careful consideration, it conducted a “thorough assessment” that took into account the information collected by the FATF and carried out on-site visits to approve Gibraltar’s delisting.

The EC said: “[Gibraltar] has made significant progress to improve its AML/CFT regime, notably on the supervision of the financial and non-financial sectors and on confiscation.”

Before Gibraltar’s removal from the list of high-risk jurisdictions can be made official, the decision must be ratified by the European Parliament, which has previously rebuffed the EC’s attempts to delist the British Overseas Territory. 

In April 2024, the Gibraltar government accused the European Parliament’s decision to vote against the gambling hub being removed from the list as one that was “poisoned by politics”. 

It added that the vote was “promulgated by hostile Partido Popular, Vox and Ciudadanos actors within the European Parliament, including José Manuel Garcia-Margallo MEP”.  

Both Partido Popular and Vox are right-wing political parties in Spain, while Ciudadanos is based in Catalonia and has strongly opposed the prospect of Gibraltar’s independence in the past. 

Gibraltar gambling commissioner Andrew Lyman said he welcomed the latest decision with “reservation”, given last year’s saga and speculation that the EC’s “diligent and fair assessment” could be scuppered by politicisation outside of its control. 

He told EGR: “While the commission has made a diligent and fair assessment the whole process is still susceptible to politicisation outside the control of the Spanish government or the commission, so I welcome the delisting recommendation with reservation.

“One hopes that right minded MEPs [members of European Parliament] will also trust the commission’s technical assessment and decision, but with the nature of political groupings that is not guaranteed.  

“For Gibraltar to remain on the list when judged objectively not to pose a risk to the EU would be a travesty, but the European Parliament endorsement is not 100% guaranteed.” 

Meanwhile, Nigel Feetham MP, Gibraltar minister for justice, trade and industry, added: “The commission’s proposal reflects Gibraltar’s clear technical compliance and our unwavering determination to uphold the integrity of our financial system.

“It is a just recognition for the continued work Gibraltar has been doing, not only to meet but to exceed international expectations.”