EU completes legislative process to remove Gibraltar from high-risk list

The European Parliament has removed Gibraltar from the EU’s list of high-risk jurisdictions with deficiencies in their anti-money laundering and counter terrorist financing frameworks.

The Gibraltar Government announced that Gibraltar had been struck off the list on Tuesday afternoon and takes legal effect, with the legislative process now concluded.

As of Tuesday, Gibraltar’s de-listing from the EU’s Anti-Money Laundering and Countering the Financing of Terrorism (AML/CFT) List takes legal effect.

This follows the EU’s earlier notification to the Government last month of its intention to remove Gibraltar from the list of jurisdictions identified as having strategic deficiencies in their AML/CFT regimes.

The removal comes after the FATF removed Gibraltar from its list in February 2024.

“This milestone reflects the progress Gibraltar has made in strengthening its AML/CFT framework and brings with it both political and reputational significance,” the Government said.
“Importantly, the decision also has practical implications for businesses operating between Gibraltar and EU Member States.”

“It eliminates the requirement for ‘enhanced customer due diligence measures’ previously mandated in EU jurisdictions for transactions or business relationships involving Gibraltar.”

The Minister for Justice, Trade and Industry, Nigel Feetham, said it is important to underscore that this decision is not just about restoring Gibraltar’s credentials as a premier financial centre.

“The decision has practical implications too on how business between the EU and Gibraltar is transacted,” he said.

“The synergies which are now formally recognised to exist between our AML/CFT regimes allow for the safe elimination of enhanced customer due diligence measures.”

“This is good for business. It is good for trade.”

“To preserve the trust re-established, and for Gibraltar to continue to be seen as a partner rather than a detractor, we must persevere with our work on this front and I have written to our interlocutors in the EU to convey my strong commitment to do so.”

The Government added that this achievement underlines Gibraltar’s commitment to the highest international standards in financial regulation and its continued role as a responsible and cooperative jurisdiction in the global financial system.

Chief Minister Fabian Picardo described how “this important step reflects the sterling work of our financial services industry and is also a reflection of the broader, ongoing relationship we are building with the EU”.

“It demonstrates that our partners in the treaty negotiations are increasingly behaving like true partners should,” Mr Picardo said.

“This decision reinforces Gibraltar’s standing and highlights the value of good faith and constructive engagement.”