European Parliament opposes EC decision to remove Gib from ‘high risk’ list

The European Parliament on Tuesday opposed the European Commission’s decision to remove Gibraltar from its list of high-risk countries with “strategic deficiencies” in mechanisms to counter money laundering and terrorist financing [AML/CFT].

No.6 Convent Place expressed disappointment with the development, adding the vote in respect of Gibraltar was “poisoned” by politics and based on “a fiction”, not technical assessment.

The Commission took the decision to remove Gibraltar from its list last March based on information from the Financial Action Task Force, which had earlier removed Gibraltar from its own “grey list” of high-risk countries.

The Commission also removed Panama, the UAE, Barbados and Uganda from its list, echoing too developments at the FATF.

But on Tuesday, MEPs in Strasbourg voted overwhelmingly to reject the Commission’s position in respect of all those countries, with 490 in favour of the motion opposing the decision, 64 against and 56 abstentions.

The original motion did not refer to Gibraltar but was amended by Spanish MEPs from the Partido Popular, Vox and Ciudadanos, including the PP hawk Jose Manuel Garcia-Margallo.

The Gibraltar Government said it was “disappointed” by the European Parliament’s vote, which it stressed did not impact the FATF’s decision to remove Gibraltar from its grey list.

No.6 Convent Place said the FATF decision followed a period of intense technical scrutiny and “meticulous” evaluation into all aspects of Gibraltar’s AML/CFT regime.

That included an on-the-ground evaluation by an FATF team last December.

The Government noted too that the European Commission’s decision to remove Gibraltar from the EU list took place after evidence-based consultation with the European Commission’s Expert Group on Money Laundering and Terrorist Financing.

That position was strongly defended by the Commission at the start of Tuesday’s European Parliament plenary session in Strasbourg.

“In sharp contrast, the European Parliament’s view is clearly not the result of any technical assessment,” No.6 said in a statement reacting to the development.

“Neither is it the product of any in depth evaluation or investigation into the work of the Gibraltarian authorities.”

“Instead, it is a position poisoned by politics, promulgated by hostile Partido Popular, Vox and Ciudadanos actors within the European Parliament, including Jose Manuel Garcia-Margallo MEP.”

“This comes as no surprise.”

Even so, the Government said it remained “seriously concerned” with one element of the parliament’s objection that suggested Gibraltart had facilitated the evasion of sanctions imposed on Russia.

“This fiction could not be further from reality given the series of widely reported, high-profile enforcement activity taken in Gibraltar with respect to assets held by designated individuals in furtherance of both the UK and EU Sanctions Regimes, the latter vigorously followed in Gibraltar, wholly voluntarily, as a result of a unilateral decision taken by HM Government of Gibraltar,” No.6 said.

“This baseless, totally unsubstantiated and gratuitous accusation is, in itself, reflective of the value which should be attached to the European Parliament’s decision.”

“The Government will not allow Gibraltar’s good name to be remotely associated with efforts to support Russia's war of aggression against Ukraine and it will therefore be raising this claim at the highest political level.”

“The Government will call on the European Commission to adopt a new decision removing Gibraltar from the EU’s list, and it would expect this decision to be taken promptly.”

No.6 added: “For the avoidance of doubt, none of these developments have any bearing on the FATF’s reasoned and considered position on Gibraltar, meaning that Gibraltar will remain off the FATF’s list.”

“Neither do these developments have any effect on ongoing negotiations with respect to Gibraltar’s future relationship with the EU.”

“And neither will any of this deter Gibraltar from enthusiastically continuing with its sterling work on enforcing its world class AFT/CFT regime or from actively supporting its partners, including the EU, on geopolitical issues including the war on Ukraine.”