FINALLY OFF THE EU’S FINANCIAL ‘GREY LIST’
Gibraltar has achieved a major breakthrough, finally coming off the European Union’s financial “grey list”. This marks a significant moment for the British overseas territory’s efforts to fight money laundering and terrorist financing. On Wednesday July 9, the European commission officially backed a proposal to remove Gibraltar from the list, despite ongoing political objections.
This approval was not easy to secure. During a full parliamentary session, members of the European parliament overwhelmingly voted against four proposals that aimed to block the commission’s decision. This strong vote shows parliament’s trust in Gibraltar’s updated rules, allowing the delisting to go ahead smoothly. It’s a clear change from 2023, when a previous attempt by the commission to delist Gibraltar failed due to resistance mainly from some Spanish MEPs.
Nigel Feetham, Gibraltar’s minister for trade justice and industry, praised the decision. He said it proved the hard work his ministry had done to put Gibraltar at the forefront of the fight against financial crime. He added that Gibraltar’s reputation as a top financial centre has now been rightly restored.
Pushing Through Political Hurdles
Even this latest parliamentary session saw fresh attempts to stop Gibraltar’s removal. These mainly came from Spanish MEPs. A proposal specifically targeting Gibraltar, put forward by a Vox MEP representing the Patriots for Europe group, was firmly rejected by 501 votes against, with only 101 in favour and 77 abstentions. The other three proposals, which tried to stop Russia and the United Arab Emirates from being delisted, also failed. This result clearly shows parliament’s strong backing for the commission’s judgement on Gibraltar’s progress.
This European recognition follows a wider trend of Gibraltar improving its standing internationally. Last February, the financial action task force (FATF), the global watchdog for money laundering and terrorist financing, also took Gibraltar off its grey list. The FATF found that Gibraltar had “substantially completed” its plan to tackle money laundering and terrorist financing. This was a big achievement, coming after missing an earlier deadline in May 2023. By October 2023, FATF noted “significant progress”, meaning the territory was no longer under their close watch.
The European commission’s subsequent assessment then matched the FATF’s findings. They confirmed that Gibraltar had done enough to be removed from the EU’s high-risk list. The commission highlighted that Gibraltar had brought in tough new laws and systems. These included better risk-based supervision, clearer rules for transparency and stronger ways to enforce regulations.
Boosting the Gambling Sector
Gibraltar’s removal from the EU list also comes at the same time as a major shake-up in its gambling industry. In late June, the government of Gibraltar published its Gambling Bill 2025. This is a comprehensive package of laws designed to replace the old Gambling Act 2005. The new bill creates a stronger regulatory structure with clear roles for a licensing authority, a new gambling commissioner and a gambling division.
The bill includes five main goals for gambling regulation. One of these specifically aims to stop gambling services being exploited for money laundering or terrorist financing. These goals are meant to match international standards for fighting financial crime. They show Gibraltar’s continued dedication to reforming its rules.
Key parts of the new law include a new licensing system covering both businesses that sell directly to customers (B2C) and those that sell to other businesses (B2B), whether online or land-based. The law also requires licences for related groups such as marketing affiliates, fund holders and platform providers. Companies operating from Gibraltar and offering services to other markets will also fall under these new rules if they have local management or infrastructure.
To ensure accountability, the bill brings in a new system for “regulated individuals”. These are people responsible for compliance finance and anti-money laundering within licensed companies. They will face a strict ‘fit-and-proper’ test and ongoing checks by the gambling commissioner. The commissioner will also have greater power to enforce rules. This includes the power to fine companies, suspend or take away licences and start court cases for serious breaches. The minister can also act on the commissioner’s advice to refuse or cancel company registrations if they are linked to unauthorised gambling.
These far-reaching changes clearly strengthen Gibraltar’s regulatory environment. They meet the tough demands of both the FATF and the EC, paving the way for a more confident and trusted future for the Rock’s financial sector.
