The EU has said that Gibraltar must do more to combat money laundering and terrorism financing, after "shortcomings" in compliance with international standards were identified by the European Union's anti-money laundering body MONEYVAL.
Whereas improvements were acknowledged in relation to inter-agency cooperation, Gibraltar did not demonstrate effective investigation and prosecution of money laundering offences, the EU's watchdog report said.
MONEYVAL said that while Gibraltar's legislative framework provided "a solid basis" to detect, investigate and prosecute these types of offences, the experts found insufficient evidence to demonstrate proactive, successful action leading to prosecutions in line with the scale of international business that moves through the Rock's financial institutions.
The report also said the jurisdiction's overall understanding of the money laundering and financing of terrorism risks is affected by several shortcomings related to the National Risk Assessment and in particular by insufficient analysis of the cross-border threat which Gibraltar faces as an international financial centre.
The report follows a visit last April by five financial, legal and law enforcement agencies. The organisation has also decided to apply its enhanced follow-up procedure and invited Gibraltar to report back at its first plenary in 2021.
The Gibraltar Government said a programme has already been started to address the action points and recommendations contained in the review. It addedthe evaluation has been carried out at its express request in order for it to better understand where it's doing well and where it needs to improve.