Moneyval preparation must be a ‘genuinely national exercise’, Feetham says

The Minister for Justice, Trade and Industry, Nigel Feetham, said Gibraltar’s preparations for its forthcoming Moneyval evaluation must be a “genuinely national exercise” involving government, public authorities, law enforcement, supervisors and the private sector.

Mr Feetham was speaking at the opening of a Moneyval country training session at the Sunborn hotel on Wednesday morning. The training session was attended by the Deputy Chair of Moneyval and colleague from the Moneyval Secretariat.

The two-day training session was an opportunity for Gibraltar to learn directly from the Moneyval Secretariat as preparations for the evaluation become increasingly focused.

Mr Feetham said the fight against money laundering, terrorist financing and proliferation financing could not be delivered by the Government alone.

“It depends on effective cooperation between policy makers, supervisors, law enforcement, the private sector and the many professionals who operate across our financial and wider business sectors,” he said.

“That partnership is particularly important for Gibraltar as an international financial centre and a jurisdiction with an open and internationally connected economy.”

He said Gibraltar remained committed to the Financial Action Task Force standards and the international effort to combat financial crime, but compliance could not simply mean having legislation, regulations and institutional structures in place.

Mr Feetham pointed out that frameworks must work in practise to enable Gibraltar to identify and understand risks to prevent the financial and business sectors from being misused.

As financial crime continues to evolve Gibraltar’s response must evolved with them he said, adding that significant work had been undertaken in recent years to strengthen Gibraltar’s framework
The forthcoming evaluation should not be viewed simply as an assessment at a particular point in time, he added, but as part of an ongoing process of identifying risks, improvements and areas where further work was required.

Mr Feetham also acknowledged Gibraltar’s size, describing the Rock’s financial centre as modest compared with larger international financial centres and major European and global economies.

But, he said, Gibraltar’s economy was dynamic and internationally connected, bringing with it responsibilities for maintaining the integrity and reputation of its financial system.

“Our objective is to ensure that the risks we face are properly understood and that our response to those risks is effective and proportionate,” he said.

He said Gibraltar’s size could also provide advantages through close working relationships between authorities, businesses and policymakers.

“We know one another. Our market participants have direct access to policymakers,” Mr Feetham said.

“Our financial intelligence unit can engage directly with frontline compliance professionals. Our supervisors know the sectors and firms they supervise and our law enforcement agencies work closely with each other and with our counterparts across the jurisdiction.”

Those relationships, he said, allowed Gibraltar to communicate quickly, share information, identify emerging risks and act when necessary.

“Perhaps most importantly, our reputation matters to us,” Mr Feetham said.

“In protecting that reputation requires us to maintain strong standards, recognise where improvements are necessary and demonstrate that our framework is effective in practise.”

“We recognise that the mutual evaluation process is an important part of ensuring that commitment translates into action.”

“It provides independent scrutiny but it also provides Gibraltar with an opportunity to reflect critically on our own systems and to learn from the experience and practise of others.”

“That is why today's training is so valuable. We are now approaching the point at which our preparations for the evaluation will become increasingly focused.”

“But this is not a sprint. It is a longer process in which preparation, cooperation and sustained effort will matter. I would therefore encourage everyone to make full use of this opportunity.”

Mr Feetham told attendees to consider not only how their own organisation contributes to Gibraltar's framework but how that work connects with the work of other authorities and sectors.

“Our preparation for Moneyval must be a genuinely national exercise,” he said.

He said every authority and sector represented at the training had a role to play, adding that Gibraltar’s objective should extend beyond demonstrating compliance during the evaluation.

Mr Feetham thanked the Moneyval Deputy Chair and Secretariat for their engagement and support, as well as Gibraltar’s authorities and private sector representatives for the work undertaken in recent years.

He said the two day conference should aid Gibraltar understand what would be expected during the evaluation and how it could demonstrate the effectiveness of work being undertaken across this sector.