EU Parliament Objects to Removing Gibraltar from High-Risk List, but Decision Expected to Proceed

The European Parliament has voted to oppose 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. The vote, which the Gibraltar government described as "poisoned by politics" and not based on facts, comes despite the Commission's assessment that Gibraltar should be removed from the list.

Gibraltar had previously been included on the Financial Action Task Force (FATF) grey list of high-risk jurisdictions. However, the FATF removed Gibraltar from this list after determining that the British overseas territory had made sufficient progress in strengthening its anti-money laundering and counter-terrorist financing (AML/CFT) regime. Based on the FATF's decision and its own analysis, the European Commission concluded that Gibraltar should also be removed from the EU's high-risk third countries list.

The European Parliament's vote to object to Gibraltar's delisting does not seem to be based on any thorough technical evaluation of Gibraltar's AML/CFT framework. "This vote was poisoned by politics and not based on any technical assessment," said Gibraltar's Chief Minister Fabian Picardo, expressing disappointment with the Parliament's position.

Why this matters: The dispute over Gibraltar's status highlights the ongoing tensions and political dimensions in the fight against money laundering and terrorist financing. The case also emphasizes the challenges in aligning assessments and policies among different international bodies and institutions involved in setting AML/CFT standards.

Despite the European Parliament's objection, the Gibraltar government expects the European Commission to proceed with adopting a new decision to formally remove the territory from the EU's high-risk list. Gibraltar officials emphasized that the Parliament's vote will not impact Gibraltar's status with the FATF or its ongoing negotiations with the EU regarding its future relationship. The government also reaffirmed its commitment to maintaining a robust AML/CFT regime and supporting its partners on key geopolitical issues, noting Gibraltar's active enforcement of EU sanctions against Russia.

Key Takeaways

• EU Parliament voted to oppose removing Gibraltar from high-risk AML/CFT list.
• Gibraltar removed from FATF grey list after improving AML/CFT regime.
• EU Commission concluded Gibraltar should be removed from high-risk list.
• Gibraltar government criticized Parliament's vote as "poisoned by politics".
• Gibraltar expects EU to proceed with removing it from high-risk list.