Gibraltar Location

3.6 The Law and Money Laundering/Terrorist Financing

The Criminal Justice Act 1995 came into force in 1996. This extended money-laundering offenses from drug trafficking to all crimes. The Criminal Justice (Amendment) Act 2004 extended the professions and activities (referred to as “relevant financial business”) covered by the legislation.

The FSC has prepared Anti-Money Laundering Guidance Notes in connection with the finance sector. These guidance notes facilitate compliance with the provisions of the act, with emphasis on the need for a risk-based approach. The guidance notes are regularly reviewed to take account of latest developments in the sector.

In meeting its international obligations under the third EU Anti-Money Laundering Directive and toward combating terrorist financing, Gibraltar has passed the following legislation:

Money laundering offenses include assisting another to retain the benefit of criminal conduct, acquisition, possession or use of property representing (the same), concealing or transferring the proceeds of criminal conduct or tipping-off. Terrorism-related offenses include raising funds for terrorism, use or custody of money or property for terrorism, or arranging funding for terrorism.

Individuals carrying out relevant financial business (including banks and building societies, investment businesses and fiduciary service providers, life and general insurance companies, insurance intermediaries, bureau de change and money transmission services) are required to put into place measures to ensure the prevention, detection and reporting of suspicious transactions.

In addition to being fully compliant with the revised FATF recommendations, the Basel Core Principles, the Vienna Convention and the third EU Anti-Money Laundering Directive, Gibraltar has in recent years been subject to external reviews by the FATF and the IMF (see Section 2.17).

For suspicious transactions in Gibraltar, the central reporting authority is the Gibraltar Financial Intelligence Unit (GFIU), which is staffed by officers from Gibraltar Customs and the Royal Gibraltar Police. All regulated entities are required by law to report to the GFIU, known or suspected illegal transactions or attempted transactions