A notable shift has occurred in the realm of global finance following the recent FATF Plenary session held from February 21 to 24. The Financial Action Task Force (FATF), an international watchdog for anti-money laundering (AML) and counter-terrorist financing (CFT) measures, concluded its meeting with the announcement that four jurisdictions had effectively freed themselves from the organization’s watchful eye. Gibraltar, alongside Uganda, Barbados, and the United Arab Emirates, received confirmation that they had been removed from the grey list — the catalog of territories under increased scrutiny due to previously identified shortcomings in their AML and CFT regimes.
The plenary, while asserting the exit of these regions from the grey list, acknowledged their “significant progress” in addressing the foundational issues highlighted during past evaluations. All four had committed to action plans, compromising specific reforms that needed execution within an agreed-upon time frame. The FATF recognized that these countries had met the stipulated requirements and would no longer be under heightened monitoring.
In what represents a successful end to stringent oversight, the FATF praised the successful on-site visits conducted in each country. Moving forward, each of the delisted nations is expected to coordinate with the FATF-Style Regional Body to which they belong, further reinforcing their AML, CFT, and CPF (Combating Proliferation Financing) systems.
While these four territories had cause for celebration, the Plenary added Kenya and Namibia to the grey list. Nevertheless, no new countries were placed in the most alarming category, known as the High-Risk Jurisdictions subject to a Call for Action. This list represents the highest level of concern and necessitates immediate international action.
Another significant development from the Plenary was the appointment of Elisa de Anda Madrazo as the incoming president of the FATF. Formerly serving as vice president from July 2020 to June 2023, de Anda Madrazo is set to lead the organization for a two-year term starting July 1, 2024.
The tale of Gibraltar’s battle with the FATF’s grey list has spanned over two years. Marked by rigorous efforts to ameliorate the organization’s concerns, Gibraltar found itself grey-listed in June 2022 and was given one year to make amends before reassessment. Within this time frame, it devised a two-point action plan post its grey list addition.
Despite initial confusion from Gibraltar’s gambling commissioner, Andrew Lyman, over the grey-listing, as he believed there were no “fundamental, systemic AML or terrorist financing weaknesses,” he expressed a firm commitment to expedite Gibraltar’s removal from the list. Gibraltar stood by its stand of not imposing additional sanctions due to the grey-listing.
October of the same year witnessed Gibraltar’s government deferring a report on its progress towards extrication from the grey list. By February the following year, the FATF acknowledged Gibraltar’s efforts, though kept it on the list. The pressure ramped up in June 2023, with a firm warning to Gibraltar that its deadline to complete the action plan by May 2023 had elapsed.
Nonetheless, Gibraltar’s perseverance and compliance with the FATF’s expectations eventually bore fruit. This success story echoes in the resolute steps taken by Uganda, Barbados, and the United Arab Emirates, all of which stand as testament to the positive outcomes possible through international cooperation and dedicated reform efforts in fortifying the integrity of the global financial system.
