Commission defends bid to remove Gibraltar from high-risk list

The European Commission on Monday defended its decision to recommend the removal of Gibraltar from the EU’s list of high risk jurisdictions.

Maria Luís Albuquerque, the Commissioner for Financial Stability, Financial Services and the Capital Markets Union, was quizzed on Gibraltar by Spanish rightwing MEPs during a joint meeting of the European Parliament’s Committee on Economic and Monetary Affairs and its Committee on Civil Liberties, Justice and Home Affairs.

The Spanish MEPs said they opposed the removal of Gibraltar from the EU list, repeating standard positions that the Rock was “a tax haven” and questioning whether the Commission had carried out an independent assessment of Gibraltar and involved the Spanish Government.

The Parliament is due to vote on a European Commission proposal to delist Gibraltar after the Financial Action Task Force, the global money laundering and terrorist financing watchdog, removed the Rock from its own “grey list” of high-risk jurisdictions last year following a lengthy evaluation process and intense work here across key areas of Gibraltar’s economy.

This is the second time the Commission recommends Gibraltar’s delisting, having done the same last year in the immediate wake of the FATF decision.

But the Commission’s first attempt was blocked by the European Parliament following the intervention of Spanish right-wing MEPs including the PP hawk Jose Manuel Garcia-Margallo, who at the time was an MEP.

Responding to the call for an independent assessment, Ms Albuquerque reminded MEPs that the FATF was an international organisation whose members included EU member states.

“So they, the governments of member states, have been included in the decisions which were made over one and a half years ago already [to remove Gibraltar from the FATF grey list],” she said.

“So member states were clearly involved in this decision and we have had again the opportunity to engage with these member states.”

And she added: “The method is tested and well established and it merits the agreement of everyone sitting around the table.”

“So I'm not sure exactly what other external or other type of assessment should be made, when all parties or all member states participating at FATF are sitting there, contributing to the method and validating the outcomes of the analysis carried out and agreeing on finally the decisions on list and delist.”

Ms Albuquerque noted too the recent political agreement for a UK/EU treaty on Gibraltar, adding this would ensure a level playing field in anti-money laundering and counter financing terrorism [AML/CFT].

“The agreement ensures that Gibraltar fully and continuously comply with all relevant international obligations,” she said.

“And furthermore, a forward looking mechanism will be established allowing both parties to discuss and accommodate future legislative changes in order to preserve a level playing field.”

She repeated the Commission’s position that Gibraltar “has made significant progress” to improve its AML/CFT regime, “notably on the supervision of the financial and non-financial sector and on confiscation”.

Ms Albuquerque said the Commission closely monitored the FATF process and was closely involved too in assessing Gibraltar's progress against its action plan as part of dedicated FATT working group tasked with assessing Gibraltar’s efforts.

Gibraltar, she said, had also showed commitment to strengthening its AML/CFT framework “beyond the requirements of its FATF action plan”, and to amend its laws to ensure it is fully compliant with the rest of the FATF framework.