All eyes on grey list decision as FATF meets in Paris this week

The Financial Action Task Force, the global money laundering and terrorist financing watchdog, will meet in Paris for a plenary session this week, with Gibraltar’s financial services sector keeping a close eye on any development in respect of the Rock’s removal from the organisation’s ‘grey list’ of high-risk jurisdictions.

Gibraltar was placed on the FATF list in June 2022 even after complying with all but two of the 98 recommendations made in a MONEYVAL mutual evaluation report.

Since then, there has been intense work here to address the remaining points raised by the FATF.

In October 2023, the FATF confirmed that Gibraltar had “substantially completed” its action plan.

As a result, the FATF agreed to send a team to the Rock for an onsite assessment to verify that the implementation of reforms on anti-money laundering and combating the financing of terrorism had begun and was being sustained, and that the necessary political commitment remained in place to ensure implementation in the future.

The hope in Gibraltar is that the FATF will give a green light this week to the Rock’s removal from the grey list.

Just last week, Nigel Feetham, the Minister for Justice, Trade and Industry, chaired another meeting with the Gibraltar MoneyVal Inter-Agency Working Group, focused on the Government’s continued efforts to achieve Gibraltar's delisting.

“Our work continues and I am very grateful for the dedication and expertise demonstrated by everyone involved,” Mr Feetham said.

“As we continue our planning, we remain focused and committed to Gibraltar's continued compliance with FATF standards in our efforts to secure Gibraltar's delisting and always remaining white-listed.”

“A huge amount of work and effort has and is being put into this.”

This week’s FATF plenary in Paris will be the fifth under the two-year Singapore Presidency of T. Raja Kumar and will take place from February 21 to 23.

Delegates representing more than 200 members of the FATF Global Network and observer organisations, including the International Monetary Fund, the United Nations, the World Bank, INTERPOL and the Egmont Group of Financial Intelligence Units, will participate in the working group and plenary meetings in Paris.

Delegates will discuss key issues including the impact of the rapid development of cross-border payment technologies and guidance to help countries with the risk-based implementation of recommendations related to the beneficial ownership and transparency of legal arrangements.

“Delegates will also discuss the progress made by some jurisdictions identified as presenting a risk to the global financial system,” the FATF said.

A summary of the plenary’s decisions will be published on the FATF website following the conclusion of the meeting, with a press conference also expected on Friday afternoon.