The British overseas territory, Gibraltar, has been added to the grey list by the Financial Action Task Force (FATF) due to concerns over its legal compliance. The decision was made based on the inadequate fines imposed by authorities in relation to anti-money laundering failings within the gambling sector. In response, Gibraltar is implementing an action plan to enhance its anti-money laundering measures, particularly focusing on imposing effective sanctions for non-bank financial institutions.
In the latest update from the FATF, which includes new additions, removals, and progress updates, Gibraltar did not provide any progress report. Instead, the jurisdiction chose to defer its reporting in order to ensure comprehensive and complete progress is reported at a later date. The FATF president emphasized the need for Gibraltar to improve its anti-money laundering penalties, especially fines related to the gambling and legal sectors, considering its status as an offshore financial hub and home to many gambling companies.
In addition to the grey listing, Gibraltar is currently undertaking a reform of its gambling laws. Recently, it initiated a consultation on new licence fees and proposed a new Gambling Act, mainly aimed at ensuring that Gibraltar licensees demonstrate a genuine local presence. The new licence fee structure will be tier-based, with higher fees for larger businesses and lower fees for smaller ones.
