The European Commission has announced the removal of Gibraltar from its list of high-risk jurisdictions for anti-money laundering (AML) and counter-terrorism financing (CFT). The decision comes after Gibraltar was officially taken off the Financial Action Task Force (FATF) “grey list” earlier this year.
Gibraltar had been under FATF’s increased monitoring since 2022, due to concerns in two critical areas: the application of regulatory sanctions and the pursuit of final confiscation judgments. Following its designation, the British Overseas Territory committed to a structured FATF action plan aimed at addressing these shortcomings.
In May 2024, Gibraltar came close to being removed from the European Union’s list after a Moneyval evaluation pointed to “significant” progress. However, the European Parliament ultimately blocked the move, which officials attributed to resistance from certain Spanish members of the chamber. The territory had already implemented all 40 of FATF’s recommended reforms by that time.
With FATF now affirming Gibraltar’s full compliance, the Commission has taken the next step. A spokesperson noted that the updated list reflects the FATF’s own assessment of jurisdictions under increased monitoring, and that alignment with FATF standards is critical for the EU’s broader commitment to global financial integrity.
Still, the final hurdle remains. Gibraltar’s removal is contingent on approval by the European Parliament, which previously vetoed the Commission’s recommendation despite FATF’s findings. Gibraltar-based lawyer Selwyn Figueras noted on LinkedIn that the latest move by the Commission “casts the ramblings of the others into sharper focus still.”
Nigel Feetham, Gibraltar’s minister for justice, trade and industry, welcomed the Commission’s decision. “While this marks an important step forward, our work is not over. We will redouble our effort. We won’t let up,” he said.
The update also saw the FATF drop several other countries from its high-risk list, including the United Arab Emirates, the Philippines, Barbados, Jamaica, Panama, Senegal, and Uganda. At the same time, new jurisdictions were added: Algeria, Angola, Côte d’Ivoire, Kenya, Laos, Lebanon, Monaco, Namibia, Nepal, and Venezuela.
The Commission acknowledged concerns raised over its methodology for determining high-risk designations. Gibraltar had been among the most vocal critics following its previous rejection. In response, the Commission said it had conducted a more thorough technical assessment this time, incorporating FATF insights, bilateral dialogue, and on-site evaluations.
The final decision on Gibraltar’s status now rests once more with the European Parliament, which will review the Commission’s updated list in the coming weeks.