Gibraltar

Sanctions

No

FATF AML Deficient List

No

Higher Risk

Offshore Finance Centre

Medium Risk

Compliance with FATF 40 + 9 Recommendations
US Dept of State Money Laundering assessment 
Weakness in Government Legislation to combat Money Laundering

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ANTI-MONEY LAUNDERING

 

FATF Status

Gibraltar is not on the FATF List of Countries that have been identified as having strategic AML deficiencies

 

Compliance with FATF Recommendations

The last Mutual Evaluation Report relating to the implementation of anti-money laundering and counter-terrorist financing standards in Gibraltar was undertaken by the Financial Action Task Force (FATF) in 2007. According to that Evaluation, Gibraltar was deemed Compliant for 12 and Largely Compliant for 20 of the FATF 40 + 9 Recommendations. It was Partially Compliant or Non-Compliant for 3 of the 6 Core Recommendations.

 

US Department of State Money Laundering assessment (INCSR)

Gibraltar was deemed a Jurisdiction of Concern by the US Department of State 2016 International Narcotics Control Strategy Report (INCSR). Key Findings from the report are as follows: -

Gibraltar, an overseas territory of the UK, is part of the EU. A November 2006 referendum resulted in constitutional reforms transferring powers exercised by the UK government to Gibraltar. Gibraltar has an international financial center, which is small internationally but large in comparison to its domestic economy. The financial services sector has strong ties to London, the Crown Dependencies, and other financial centers. The economy of Gibraltar also generates revenue from tourism, the service industry, and cruises.

Bordering Spain and near the north coast of Africa, Gibraltar is adjacent to known drug trafficking and human smuggling routes, but the territory is heavily policed on land and at sea due to the risk of these activities occurring within its borders or territorial waters. Gibraltar is exposed to money launderers located in drug producing centers in Morocco and drug consumption and distribution networks in Spain. With the establishment in southern Spain of organized criminal activities from Eastern Europe, there is potential for launderers to use Gibraltar as a base for money laundering. These risks are mitigated by the small coastline and effective policing. Border controls between Gibraltar and Spain also help deter potential money launderers wishing to use Gibraltar for their activities. Tobacco smuggling over the Gibraltar frontier has been a problem.

 

SANCTIONS

There are no international sanctions currently in force against this country.

 

 

BRIBERY & CORRUPTION

Rating                                                                           (100-Good / 0-Bad)

Transparency International Corruption Index                           N/A

World Governance Indicator – Control of Corruption             N/A

 

ECONOMY

Self-sufficient Gibraltar benefits from an extensive shipping trade, offshore banking, and its position as an international conference centre. Tax rates are low to attract foreign investment. The British military presence has been sharply reduced and now contributes about 7% to the local economy, compared with 60% in 1984. In recent years, Gibraltar has seen major structural change from a public to a private sector economy, but changes in government spending still have a major impact on the level of employment.

 

The financial sector, tourism (over 11 million visitors in 2012), gaming revenues, shipping services fees, and duties on consumer goods also generate revenue. The financial sector, tourism, and the shipping sector contribute 30%, 30%, and 25%, respectively, of GDP. Telecommunications, e-commerce, and e-gaming account for the remaining 15%.

 

Agriculture - products:

none

Industries:

tourism, banking and finance, ship repairing, tobacco

Exports - commodities:

(principally reexports) petroleum 51%, manufactured goods (2010 est.)

Imports - commodities:

fuels, manufactured goods, foodstuffs

 

 

Country Links
Gibraltar Financial Intelligence Unit (GCID GFIU)
Financial Services Commission
Other Useful Links
FATF
US State Department
Transparency International
World Bank
CIA World Factbook

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