Gaza Strip Country Summary
Higher Risk
View full Ratings TableSanctions
Medium Concern
FATF AML Deficient List
Medium Concern
Terrorism
Higher Concern
Corruption
Higher Concern
US State ML Assessment
Medium Concern
Criminal Markets (GI Index)
Medium Concern
EU Tax Blacklist
Lower Concern
Offshore Finance Center
Lower Concern
Please note that although the below Summary will give a general outline of the AML risks associated with the jurisdiction, if you are a Regulated entity then you may need to demonstrate that your Jurisdictional AML risk assessment has included a full assessment of the risk elements that have been identified as underpinning overall Country AML risk. To satisfy these requirements, we would recommend that you use our Subscription area.
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Anti Money Laundering
FATF Status
The West Bank/Gaza Strip is not on the FATF List of Countries that have been identified as having strategic AML deficiencies
Compliance with FATF Recommendations
A Mutual Evaluation Report relating to the implementation of anti-money laundering and counter-terrorist financing standards has not yet been undertaken for the West Bank/Gaza Strip.
Sanctions
The U.S. Department of the Treasury has imposed sanctions targeting key Hamas members and financial facilitators operating in Gaza, aiming to disrupt the group's sources of revenue and financial networks. These sanctions include blocking property and interests of designated individuals and entities, thereby prohibiting U.S. persons from engaging in transactions involving them.
Criminality
Rating |
0 (bad) - 100 (good) |
|---|---|
| Transparency International Corruption Index | NA |
| World Bank: Control of Corruption Percentile Rank | 26 |
In the Gaza Strip, public perception of corruption is primarily characterized by favoritism and nepotism, particularly within government institutions where citizens believe senior officials are most susceptible to corrupt practices. While the legal framework, including the Anti-Graft Law and the establishment of the Palestinian Anti-Corruption Commission, aims to combat corruption, the pervasive belief that access to power is necessary for business success persists, despite low reported instances of bribery compared to regional counterparts.
Economy
The economy of the Gaza Strip is severely constrained, with a nominal GDP of just over $19 billion in 2022, and has faced a complete standstill in economic activities following the events of October 7, 2023. The region is heavily reliant on Israel for trade, with approximately 90% of exports directed there, leading to a significant trade deficit of $6.2 billion in 2023, as imports totaled $7.74 billion against exports of only $1.56 billion. The ongoing political instability, compounded by movement restrictions and a lack of foreign direct investment, has resulted in an alarming unemployment rate of 74% in Gaza by the end of 2023, highlighting the urgent need for economic recovery and reform in the face of deteriorating conditions.
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