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Strengthening Gibraltar’s Financial Integrity: GFSC’s Revised AML/CFT/CPF Guidance

by | Jan 15, 2024 | Gibraltar

The financial landscape is ever-evolving, and staying ahead of the curve in terms of regulatory compliance is paramount. In Gibraltar, the Gibraltar Financial Services Commission (GFSC) plays a pivotal role in ensuring the financial sector’s integrity. 

Unlike the UK, Gibraltar is regulated for providing company formation and management. 

Recently, the GFSC launched a comprehensive consultation process to revise its Anti-Money Laundering/Countering the Financing of Terrorism/Counter Proliferation Financing (AML/CFT/CPF) guidance. This blog delves into the key elements of this revision, shedding light on how it strengthens Gibraltar’s financial integrity.

GFSC Consultation Update:

The GFSC’s commitment to maintaining a robust regulatory framework is evident in its ongoing consultation process. The consultation, as detailed on their official website: [https://www.fsc.gi/news/gfsc-launches-consultation-of-revised-amlcftcpf-guidance-notes-493], provides stakeholders with an opportunity to contribute their insights. By actively involving industry participants, the GFSC ensures that the revised guidance is not only comprehensive but also reflective of the dynamic nature of the financial sector.

Financial Regulation Updates in Gibraltar:

Gibraltar has long been recognized as a reputable financial centre and was one of the first jurisdictions to regulate both the gaming and crypto industries. Its regulatory authorities are vigilant in adapting to global financial challenges. The updates in financial regulations, particularly in the context of AML/CFT/CPF, demonstrate Gibraltar’s commitment to aligning its practices with international standards. These revisions are instrumental in safeguarding the jurisdiction’s financial system from illicit activities and promoting transparency.

Revised AML/CFT Guidance:

The revised AML/CFT guidance marks a significant milestone in Gibraltar’s efforts to combat financial crimes. The guidance is expected to provide a more comprehensive and nuanced approach to addressing emerging risks. The GFSC, through this revision, aims to strengthen the financial institutions’ ability to detect and prevent money laundering, terrorism financing, and proliferation financing activities.

Financial Crime Prevention Amendments:

A key aspect of the revised guidance revolves around amendments to financial crime prevention measures. This includes introducing more robust mechanisms for identifying and mitigating risks associated with money laundering and terrorist financing. The amendments may also emphasize the need for continuous training and awareness programs within financial institutions to ensure that their personnel are equipped to navigate the evolving landscape of financial crimes.

GFSC Industry Standards Updates:

The revised AML/CFT/CPF guidance is expected to bring about updates in industry standards set by the GFSC. Financial institutions and relevant entities will need to align their internal policies and procedures with these updated standards. Adhering to these standards not only ensures compliance but also reinforces Gibraltar’s standing as a responsible and secure financial jurisdiction.

The amendments include transaction monitoring for all companies whether the directors are in-house or the clients themselves. 

 

Conclusion:

The ongoing revision of the AML/CFT/CPF guidance by the GFSC is a testament to Gibraltar’s commitment to financial integrity. By actively involving industry stakeholders in the consultation process, Gibraltar ensures that its regulatory framework remains effective and responsive to emerging threats. The revisions are anticipated to bolster financial crime prevention measures, align Gibraltar with international standards, and elevate industry standards. Ultimately, these efforts contribute to the continued growth and sustainability of Gibraltar’s financial sector, solidifying its reputation as a trustworthy and compliant jurisdiction in the global financial landscape.

Octopus welcome and adhere to all the guidance and have already adopted transaction monitoring for companies under our management. It is important to keep evolving with the systems and procedures.