The Rock of Gibraltar, despite being categorized as a jurisdiction requiring heightened oversight by the Financial Action Task Force (FATF), will not enact harsher punishments or implement additional restrictions. The head of the Gibraltar Gambling Commission, Andrew Lyman, expressed astonishment at the listing, asserting that Gibraltar does not possess any fundamental shortcomings in its anti-money laundering (AML) or counter-terrorism financing frameworks.

Lyman underscored his dedication to expediting Gibraltar’s removal from the grey list, pointing out that the action plan designed to address the FATF’s concerns is exceptionally concise, consisting of only two key points. He is confident that this will facilitate a swift resolution.

Gibraltar’s inclusion on the grey list, which encompasses jurisdictions subject to enhanced monitoring, follows the removal of Malta. Paralleling Malta’s initial listing, Gibraltar submitted a plan of action to rectify any financial inadequacies identified by the FATF. Lyman emphasized that this is the most succinct action plan among all jurisdictions on the grey list and that Gibraltar could have continued to be overseen by Moneyval, mirroring the Isle of Man.

Gibraltar will remain on the grey list for a period of one year, until the reassessment phase.

Lehman is certain that Gibraltar will be taken off the grey list within a year.

Marcus Plena, head of the Financial Action Task Force on Money Laundering, stated at the time that the lack of adequate anti-money laundering penalties was the cause for the decision.

Lehman, however, stated that Gibraltar authorities have been proactive in taking such action, highlighting that during the evaluation period (2020 to 2022), the Gibraltar Gambling Commission reached six regulatory agreements with five operators, totaling £3.7 million.

However, he noted that these agreements “were not seen as positive and concrete progress,” adding that “no standards were provided on what would be considered sufficient.”

Lehman instead said that Gibraltar is “a leading jurisdiction in many ways,” as it has enhanced its anti-money laundering and counter-terrorism financing system, making it “difficult to handle” its inclusion on the grey list after improving its anti-money laundering and counter-terrorism financing shortcomings.

Looking ahead, he said the decision means that regulators must now conduct further on-site examinations of operators to ensure they meet the FATF’s standards.

“We have to demonstrate that our system is robust,” he said. “This is what we failed to accomplish in the current round. We have to reach the top again.

“To achieve this, it is essential to continue our regulatory program, as well as…”

To carry out some in-person examinations that were initially scheduled for a later time.

Lyman highlighted that Gibraltar will not compromise its standards due to its inclusion on the grey list, stating: “We will not artificially modify our standards to accommodate enforcement cases. This is not in keeping with Gibraltar’s approach, and I believe the FATF has not requested us to do so.”

“I believe the objective is not to impose more penalties, but to demonstrate the overall efficacy of our system and to implement sanctions proportionately when required.”

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