Gibraltar, known for its gambling-oriented environment, has been taken off the FATF's grey list.
Gibraltar and a few other nations are taken off the FATF's Gray List.
On the 23rd of February, as declared on their official site [English link provided], the Financial Action Task Force (FATF) announced the removal of Gibraltar, a British overseas territory, from their Gray List. This implies that the region, often recognized for its gambling operations, is no longer subject to enhanced FATF scrutiny.
In its statement, the FATF acknowledged significant improvements made by Gibraltar in combating money laundering and terrorist financing. The territory has thus fulfilled its commitments as outlined in the FATF action plan.
These nations are now exempt from the intensified monitoring of the FATF. This happened following a successful on-site evaluation in every one of these nations.– FATF, iGaming Business
The action plan was conceived in June 2022, shortly after Gibraltar was included in the Gray List. This plan included implementing measures and penalties that were effective and proportionate in the fight against money laundering and terrorist financing.
Similarly, Uganda, Barbados, and the United Arab Emirates have also fulfilled the stipulations of their FATF action plans and have subsequently been removed from the Gray List. There is also a [English link provided] Black List, which categorizes countries at high risk.
All countries that do not feature on the Gray or Black List are automatically included in the unofficial White List.
What is the FATF and what do its lists signify?
The Financial Action Task Force is an international organization focused on the prevention and eradication of terrorist financing, money laundering, and the dissemination of weapons of mass destruction. The FATF publishes publicly accessible lists that indicate a country's adherence to global standards.
The FATF is not solely a monitoring body, but also offers aid to nations in combating the mentioned crimes. Over 200 countries have pledged to the objectives of the FATF.
Countries on the Black List may face economic sanctions. Money laundering risks are substantially higher in such countries. The Gray List refers to countries that have noticeable shortcomings in the management of financial crimes. Being added to the Gray List carries not only reputational damage, but also economic sanctions.
Gibraltar is no longer on the Gray List after two years
Gibraltar was added to the FATF Gray List in June 2022 [English link provided]. The territory also faced a one-year suspension, allowing for the reassessment only in 2023.
This incited discontent in Gibraltar. At the time, Gibraltar's gambling commissioner expressed ignorance regarding the reasons behind the British enclave's addition to the Gray List. He also emphasized the absence of fundamental, systemic weaknesses in Gibraltar's fight against money laundering or terrorist financing.
In 2023, the gambling commissioner voiced his ambition to remove Gibraltar from the Gray List as soon as possible. He has now achieved this goal.
Gibraltar serves as a hub for numerous gambling enterprises
Gibraltar is popular among gambling companies, primarily due to its tax benefits for service providers. In 2018, the government decided to lower the gambling tax to 0.15 percent. The licensing fees for providers are also considerably lower compared to other countries.
As per the Gibraltar government [], a total of 48 gambling companies operate from the British enclave. This includes several renowned providers such as Entain, 888, Gamesys, and Pragmatic.
The removal of Gibraltar from the Gray List by the FATF was widely reported as news in various international media outlets. Following its successful completion of the action plan, Gibraltar is now free from the intensified monitoring and potential economic sanctions associated with being on the Gray List.
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