European Parliament backs Gibraltar’s removal from EU high-risk list

The European Parliament on Wednesday approved a European Commission proposal removing Gibraltar from the EU’s list of high-risk jurisdictions with deficiencies in their anti-money laundering and counter terrorist financing frameworks.

MEPs rejected four resolutions that would have blocked approval of the Commission’s proposal, in effect giving it their backing.

This was the second time the proposal, known as a delegated act, had come before the European Parliament, having been blocked last year in part thanks to resolutions on Gibraltar tabled by right-wing Spanish MEPs.

Ahead of the vote today, Spanish MEPs again tried to use their objections on Gibraltar’s removal to block the delegated act despite a robust defence from the Commission itself.

Among the four resolutions rejected by the parliament was one specifically about Gibraltar tabled by a Spanish Vox MEP on behalf of the Patriots for Europe group.

The Vox resolution was defeated by 501 votes against to 101 in favour, with 77 abstentions.

The remaining three resolutions did not mention Gibraltar and focused primarily on concerns relating to Russia and the UAE.

But they would have blocked the proposal had any of them been accepted by MEPs.

A key element of the decision not to block the delegated act was a Commission commitment to have the EU’s new Anti-Money Laundering Authority investigate the prospect of blacklisting Russia and report back by the end of 2025.

That proved sufficient to garner the support of most MEPs for the delegated act.

After today’s vote, the delegated act will update the EU high-risk list and remove Gibraltar, the UAE, Uganda, Senegal, the Philippines, Panama, Jamaica and Barbados, while adding Algeria, Angola, Cote d’Ivoire, Kenya, Laos, Lebanon, Monaco, Namibia, Nepal and Venezuela.

That will bring the EU list in line with the grey list of the Financial Action Task Force, the global money laundering watchdog, which removed Gibraltar from its own grey list last year following a lengthy evaluation process and intense work here across key areas of Gibraltar’s economy.

The European Council must now confirm it has no objection, after which the delegated act will be published in the EU’s official journal, at which point it will come into force.

That process is expected to conclude shortly.

The development was welcomed by the Gibraltar Government.

“The news today that the European Parliament has rejected objections to the update of the EU list brings an end to the uncertainty about Gibraltar's merited delisting which should have happened over a year ago following our delisting by the FATF,” said Nigel Feetham, the Minister for Justice, Trade and Industry.

“This is testament to the work undertaken by my ministry to bring Gibraltar to the vanguard of the fight against money laundering and counterterrorist financing, and Gibraltar’s reputation as a world-leading financial centre has been rightfully restored.”

“It is clear too that our engagement with partners in Brussels, both with the European Commission and the European Parliament, has worked to produce the result that we have worked so hard to obtain.”

“Our work does not end here though. We will not rest on our laurels.”

“We will continue to improve and are committed to maintaining the highest international standards and working constructively with our European and international partners.”

Mr Feetham was in Brussels late June to meet MEPs and explain in person Gibraltar’s commitment to international regulatory compliance and its work in this context.

“We delivered on our promise to come off the so-called FATF grey list in February last year and now we have been removed from the EU list as well,” he told the Chronicle.

“Until hours before the vote, I was still on the phone seeking updates and making Gibraltar’s case. Today, all that effort over the last 15 months has paid off.”

“Thank you to everyone who played a part in achieving this for Gibraltar.”

“This is a win for our people, our reputation, and our future.”