Gibraltar has been added to the Financial Action Task Force (FATF) ‘grey list’ of jurisdictions subject to increased monitoring for failing to adequately implement anti-money laundering and counter financing of terrorism (AML/CFT) measures. Malta, after 12 months of increased monitoring, is now off the grey list.
The global financial watchdog announced the changes to the grey list last week at its plenary meetings in Berlin, where it said Pakistan would remain on the list of jurisdictions subject to increased monitoring for the time being.
Gibraltar
The FATF has added Gibraltar to the grey list as a result of failings in its efforts to demonstrate that it is more actively and successfully pursuing final confiscation judgments, through criminal or civil proceedings based on financial investigations.
The British Overseas Territory on Spain’s south coast also needs to ensure that supervisory authorities for non-bank financial institutions and designated non-financial businesses and professions (DNFBPs) use a range of effective, proportionate, and dissuasive sanctions for AML/CFT breaches.
Casinos and lawyers
“At the moment, supervisors are not applying sufficient fines for anti-money laundering failings,” according to FATF chair, Marcus Pleyer.
“Gibraltar needs to take a number of steps including focusing on gatekeepers to the financial system, including gambling operators and lawyers” he explained.
Malta
Last year Malta became the first European country to be placed on the grey list after the FATF identified lack of transparency on the ultimate beneficial owners of companies and weak financial intelligence on tax crimes.
The FATF congratulated Malta on its progress on addressing strategic AML/CFT deficiencies and is therefore no longer be subject to the watchdog’s increased monitoring process.
Pakistan substantially compliant
At its plenary meetings the FATF determined that Pakistan has substantially completed its two action plans, covering 34 items, in its efforts to be removed from the grey list.
The watchdog says that this progress warrants an on-site visit to verify that the implementation of Pakistan’s AML/CFT reforms has begun and is being sustained, and that the necessary political commitment remains in place to sustain implementation and improvement in the future. The FATF says it will conduct an on-site visit at the earliest possible date.
A FATF statement, Jurisdictions under Increased Monitoring – June 2022, provides more details on the latest grey list and can be found here.
Categories: Trade Based Financial crimes News
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