Gaza Strip Country Summary
Sanctions
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
Following the invasion by Hamas into Israel on October 12, Israel imposed a total siege on Gaza, restricting essential supplies. The Arab League has a history of sanctions, notably against Syria since 2011, and maintains a boycott of Israel, though enforcement varies among member states. Recent calls for action include punitive measures against Israel in response to the Gaza situation, but the League's enforcement capabilities are limited due to reliance on member compliance.
On October 18, the U.S. Treasury Department sanctioned ten Hamas operatives and financial facilitators across various countries, targeting their revenue sources. This action is part of ongoing efforts to disrupt Hamas's financial networks, which include a secret investment portfolio and virtual currency operations. The sanctions block any property or interests of the designated individuals in the U.S., with strict prohibitions on transactions involving them.
Criminality
Rating |
0 (bad) - 100 (good) |
|---|---|
| Transparency International Corruption Index | NA |
| World Bank: Control of Corruption Percentile Rank | 26 |
A September 2022 poll by the Coalition for Integrity and Accountability (AMAN) revealed that the Palestinian public perceives favoritism and nepotism as the most prevalent forms of corruption, particularly within government institutions. While the Anti-Graft Law of 2005 aims to combat corruption, the belief that access to power is essential for business success remains widespread. Despite low reported instances of bribery, civil society and organizations like AMAN actively promote anti-corruption efforts and raise public awareness.
Economy
The economy of the Gaza Strip has come to a complete standstill following the events of October 7, 2023, exacerbating an already dire situation characterized by high unemployment rates, which reached 74 percent in the fourth quarter of 2023. The region's economic activities are heavily constrained by Israeli restrictions on movement and access, leading to a significant decline in GDP and a lack of foreign investment opportunities.
The investment climate in the Gaza Strip has been severely impacted by ongoing conflict and restrictions, leading to a complete standstill in economic activities following the events of October 7, 2023. The lack of a stable legal environment, compounded by the de facto governance of Hamas, creates significant barriers to private investment, with businesses facing coercion and inconsistent application of laws. As a result, foreign direct investment remains extremely low, and the focus for potential investors is likely to be on reconstruction and recovery efforts in the aftermath of the recent crisis.
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- Risk Analysis
- Corruption
- Economy
- Sanctions
- Narcotics
- Executive Summaries
- Investment Climates
- FATF Status
- Compliance
- Key Findings