The GFSC’s Consultation of its Revised AML/CFT/CPF Guidance Notes

The GFSC is a regulator of the Gibraltar Financial services market and regulates financial firms and individuals who provide financial services in Gibraltar. Its regulatory objectives are to promote market confidence, reduce systemic risk, promote public awareness, protect the good reputation of Gibraltar and its consumers, and reduce financial crime. 

The recent launch of the GFSC’s revised AML/CFT/CPF Guidance Notes (the “Notes”) has seen a positive response during its consultation period. Financial firms have been encouraged to provide feedback on the draft sections of the revised Notes and have until the 5^th of January 2024 to make submissions. 

The GFSC’s AML/CFT/CPF Notes were first published in 1996 and has since seen various amendments since its publication due to significant developments in local and international standards on financial crime prevention. With added content and formatting, the revised Notes are more accessible, provide an increased level of sector-specific guidance and has introduced reformed “requirements.” These fundamental requirements apply to all regulated firms and individuals in Gibraltar, with the Notes detailing how these obligations should be fulfilled while offering financial services. 

Overall, the revised Notes have been designed to explain Gibraltar’s legal framework concerning money laundering, terrorist financing and proliferation financing. Most significantly, its aim is to offer assistance to regulated firms and individuals, ensuring industry-wide compliance with legal requirements. All regulated firms have a legal duty to comply with the provisions set out in the Notes, which are legally enforceable under the Proceeds of Crime Act 2015. 

In June 2022, Gibraltar made a commitment to work with the FATF and MONEYVAL to strengthen the effectiveness of its AML/CFT regime. At its October 2023 Plenary, the FATF highlighted that Gibraltar had substantially completed its action plans. The issuance of the revised notes for consultation comes at an opportune moment, representing a positive step forward for Gibraltar’s financial industry. The updated guidance will undoubtedly support AML/CFT reforms which Gibraltar has dedicated to implement into its regulatory framework, aligning with the FATF’s 40+ Recommendations.