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EC adds Gibraltar and other countries to ‘high-risk’ list

EC adds Gibraltar and other countries to ‘high-risk’ list.

In December 2022, the European Commission adopted a new Delegated Regulation concerning third countries with strategic deficiencies in their AML/CFT regimes. The list now includes the jurisdictions of third countries: the Democratic Republic of Congo, Gibraltar, Mozambique, Tanzania, and the United Arab Emirates.

Gibraltar has one of the most favorable tax regimes in Europe, attracting many companies and entrepreneurs who want to register their business in this jurisdiction.

On March 16th, the European Commission made official updates. The decision came as a blow to Gibraltar, which had been intensively working for many years on tightening measures to combat money laundering and terrorist financing and adhering to FATF standards.

These news significantly impact existing businesses in Gibraltar, including digital companies that had big plans with Gibraltar and placed high stakes on this jurisdiction and its advantages.

As a result of the regulation, banks and financial institutions in Europe have started to cease cooperation with this jurisdiction en masse, and European companies are increasingly considering whether it is worth taking the risk and entering into partnership relations with Gibraltar-based companies. Thus, Gibraltar is gradually turning into a “gray” solution for companies and is no longer advantageous for conducting business in Europe.

Read more at the link: https://finance.ec.europa.eu/financial-crime/high-risk-third-countries-and-international-context-content-anti-money-laundering-and-countering_en