MEPs vote today on EU high-risk list as Vox seeks to block Gibraltar’s removal

The European Parliament will today vote on a proposal from the European Commission to update the EU’s list of high-risk jurisdictions to include some countries and remove others, including Gibraltar.

MEPs will vote on four proposed amendments to the Commission’s “delegated act” any of which, if passed, would lead to the proposal being blocked.

This will be the second time that the Commission attempts to update the EU list of high-risk jurisdictions with deficiencies in their anti-money laundering and counter terrorist financing [AML/CFT] mechanisms.

The Commission first recommended dropping Gibraltar from the list 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.

But the Commission’s first effort in 2024 was blocked following an amendment tabled by right-wing Spanish MEPs complaining about Gibraltar’s removal.

It meant the EU list was not updated, but the Commission’s position on Gibraltar remains unchanged.

It said 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”.

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 FATF working group tasked with assessing Gibraltar’s efforts.

The Commission said Gibraltar has 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.

But for Spanish MEPs, the issue is deeply political and that has become plainly evident in the run-up to Wednesday’s vote.

One of the proposed amendments relates specifically to Gibraltar and was tabled by the Spanish far-right party Vox, a member of the Patriots for Europe group in the European Parliament.

The motion from Vox MEP Jorge Buxadé Villalba, tabled on behalf of Patriots for Europe, said the Commission proposal does not account for “the threats to the international financial system in the case of Gibraltar” or “the Spanish negotiating position for the long-term on the decolonisation procedure”.

Another two amendments were tabled by MEPs from the Left Group and the Greens/European Free Alliance, raising concerns about the United Arab Emirates and Russia.

The fourth was tabled by MEPs from the European People’s Party, which includes Spain’s Partido Popular, and raised concerns that by lumping all countries together into one delegated act, the Commission was limiting MEPs’ ability to voice objections relating to specific jurisdictions.

The motion also urged the Commission to avoid solely using the classifications of the Financial Action Task Force, which it described as “insufficient and overly restrictive”.

All the proposed amendments highlighted the importance of anti-money laundering and counter terrorist financing mechanisms in a global financial network where digital platforms and crypto currencies were gaining prominence.

At the end of June, Maria Luís Albuquerque, the Commissioner for Financial Stability, Financial Services and the Capital Markets Union, robustly defended the Commission’s position on Gibraltar when quizzed in the European Parliament ahead of the vote.

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] going forward.

In the run-up to the vote today, Gibraltar’s Minister for Justice, Trade and Industry, Nigel Feetham, travelled to Brussels to meet MEPs and explain Gibraltar’s work in this area and its commitment to international regulatory compliance.

Speaking last week in the Gibraltar Parliament after his return, Mr Feetham had a clear message.

“The only ones still attacking Gibraltar on this issue are the Partido Popular and Vox,” he said.

“Let’s be absolutely clear: they are the ones standing in the way of Gibraltar achieving a fair and rightful outcome.”

“No one else is. Not the European Commission. Not the majority of the European Parliament - except, that is, for those clearly acting under political pressure or driven by agendas that have little to do with Gibraltar itself.”

He rejected “every single falsehood” argued by Vox in presenting its position in the European Parliament.