WHAT ARE THE
Money laundering and terrorism financing laws in Gibraltar?
Money Laundering Regulations in Gibraltar:
- Proceeds of Crime Act 2015 (POCA): Gibraltar's main legislation related to money laundering is the Proceeds of Crime Act 2015. This law outlines the legal framework for preventing and combating money laundering activities. It establishes the obligations of financial institutions and certain designated non-financial businesses and professions (DNFBPs) to implement anti-money laundering (AML) and know-your-customer (KYC) procedures.
- Financial Intelligence Unit (FIU): The Gibraltar Financial Intelligence Unit (GFIU) is the national authority responsible for receiving, analysing, and disseminating information related to suspicious transactions and money laundering activities. It plays a crucial role in the AML regime in Gibraltar.
- Supervisory Authorities: Various supervisory authorities oversee compliance with AML regulations in Gibraltar, depending on the type of business. The Gibraltar Financial Services Commission (GFSC) supervises financial institutions, while other authorities oversee DNFBPs, such as lawyers, accountants, and real estate agents.
Terrorism Financing Laws in Gibraltar:
- Gibraltar's laws related to terrorism financing are integrated into its broader AML framework. The same regulations and measures in place to combat money laundering are also used to detect and prevent terrorism financing activities.
International Cooperation:
- Gibraltar cooperates with international organizations and other countries to combat money laundering and terrorism financing. It is subject to international standards set by the Financial Action Task Force (FATF) and works closely with the UK authorities to maintain effective AML measures.
WHO ARE THE
ML/TF regulators in Gibraltar and what functions do they perform?
In Gibraltar, the regulation and oversight of anti-money laundering (AML) and counter-terrorism financing (CTF) measures involve several regulatory authorities and government bodies.
The primary regulators and authorities responsible for AML and CTF in Gibraltar include:
- Gibraltar Financial Services Commission (GFSC): The Gibraltar Financial Services Commission is the principal regulatory authority responsible for overseeing and regulating the financial services industry in Gibraltar. GFSC ensures that financial institutions, including banks, insurance companies, and investment firms, comply with AML and CTF regulations and maintain the highest standards of financial integrity.
- Gibraltar Financial Intelligence Unit (GFIU): The Gibraltar Financial Intelligence Unit serves as the national financial intelligence unit responsible for receiving, analysing, and disseminating information related to suspicious transactions and potential money laundering or terrorism financing activities. It plays a pivotal role in detecting and preventing financial crimes.
- Gibraltar Gambling Division: The Gibraltar Gambling Division is responsible for regulating and supervising the gambling and online gaming sector in Gibraltar. This includes ensuring that gaming operators implement robust AML and CTF measures to prevent illicit activities in the industry.
- Supervisory Authorities for Designated Non-Financial Businesses and Professions (DNFBPs): Gibraltar has supervisory authorities for DNFBPs, such as lawyers, accountants, and real estate agents, who are subject to AML and CTF regulations. These authorities oversee compliance within their respective sectors.
- Law Enforcement Agencies: Gibraltar's law enforcement agencies, including the Royal Gibraltar Police (RGP) and the Gibraltar Customs and Excise Agency, work in conjunction with regulatory authorities to investigate and prosecute money laundering and terrorism financing offences.
- International Cooperation: Gibraltar cooperates with international organisations and agencies, including the Financial Action Task Force (FATF) and the European Union, to align its AML and CTF measures with international standards and to strengthen its efforts in combating financial crime on a global scale.
WHAT ARE THE
Industry sectors subject to ML/TF regulations?
In Gibraltar, various industry sectors are subject to anti-money laundering (AML) and counter-terrorism financing (CTF) laws and regulations. These sectors are required to implement AML and CTF measures to prevent money laundering and terrorism financing activities. The key industry sectors subject to AML and CTF laws in Gibraltar include:
Designated Non-Financial Businesses and Professions (DNFBPs)
DNFBPs are entities that are not financial institutions but can be exploited for money laundering and terrorism financing purposes.
Other sectors
WHAT ARE THE
Penalties for non-compliance with AML/CTF laws?
Gibraltar has established penalties for non-compliance with anti-money laundering (AML) and counter-terrorism financing (CTF) laws and regulations to ensure that financial institutions and individuals adhere to these rules. The penalties for non-compliance with AML and CTF laws in Gibraltar may vary depending on the specific violations and the severity of the offence. Some of the typical penalties and consequences for non-compliance with AML and CTF laws in Gibraltar may include:
- Administrative Penalties: Regulatory authorities in Gibraltar can impose administrative penalties on financial institutions and individuals who fail to meet their AML and CTF obligations. These penalties often involve monetary fines, warnings, or other sanctions.
- Criminal Penalties: Serious non-compliance or involvement in money laundering or terrorism financing activities can lead to criminal prosecution. Criminal penalties may include imprisonment, substantial fines, or both for individuals and entities found guilty.
- Revocation of Licences: Regulatory authorities in Gibraltar have the authority to revoke the licences of financial institutions or other businesses that are seriously non-compliant with AML and CTF regulations. This action can effectively terminate the operations of the entity in question.
- Seizure and Confiscation of Assets: Authorities in Gibraltar can seize and confiscate assets that are determined to be connected to money laundering or terrorism financing.
- Disqualification and Prohibition Orders: Individuals who are found guilty of money laundering or terrorism financing offences may face disqualification from holding certain positions or conducting specific financial activities. Prohibition orders can restrict individuals from working in the financial sector.
- Civil Penalties: Apart from criminal penalties, civil penalties may be imposed on individuals and entities for non-compliance, breaches and activities covered by criminal law.
- CTF regulations: These penalties often involve financial fines and other monetary sanctions.
- Reputation Damage: Non-compliance can significantly harm the reputation of individuals or institutions involved, which can have long-lasting consequences in the financial industry.
It's important to note that the specific penalties and consequences may vary based on the nature and severity of the violation, as well as changes in the regulatory environment. The enforcement of AML and CTF laws is carried out by regulatory authorities such as the Gibraltar Financial Services Commission (GFSC) and the Royal Gibraltar Police, among others.