EU Parliament’s Decision on AML/CFT List Receives Pushback from Gibraltar

Despite a proposal to remove the United Arab Emirates (UAE), Gibraltar, and Panama from Europe’s list of countries with significant Anti-money Laundering (AML) and Countering the Financing of Terrorism (CFT) deficiencies, the European Parliament voted against it last week.

Members of the European Parliament (MEPs) overwhelmingly opposed the European Commission’s (EC) proposal to remove the three countries from the high-risk AML/CFT list. With 490 MEPs supporting the motion against the proposal, the EC’s stance faced staunch opposition, signaling a divergence in views.

FATF Recognition vs. European Decision

The decision contrasts with the Financial Action Task Force’s (FATF) recent move to remove Gibraltar from its grey list, acknowledging the country’s efforts in adhering to AML and CFT regulations. Despite this recognition, Gibraltar remains on Europe’s high-risk list, a discrepancy that has drawn criticism from the country’s government.

Expressing dissatisfaction with the European Parliament’s decision, Gibraltar’s government emphasized its disappointment, particularly considering the country’s removal from the FATF’s grey list. The government criticized the MEPs’ decision as politically motivated, highlighting its divergence from technical assessments.

The government reiterated the importance of the FATF’s recognition and asserted that the European Parliament’s stance does not negate Gibraltar’s progress in addressing AML/CFT concerns. However, it lamented the politicization of the issue, attributing the decision to political actors within the European Parliament.

Amidst the contrasting views and regulatory dynamics, the debate surrounding AML/CFT measures continues, underscoring the complexities of international financial regulation.