Gibraltar Set to Exit FATF Grey List as EU Commission Shifts Position

European Commission Backs Gibraltar’s Delisting

Gibraltar appears poised to shed its grey-listed status under the Financial Action Task Force (FATF), following a shift in stance from the European Commission (EC). The move is seen as a significant development for the territory, which has been working to bolster its anti-money laundering (AML) and counter-terrorism financing (CFT) regime since it was first listed in 2022.

The EC’s confirmation means the final step rests with the European Parliament, whose previous opposition—widely viewed as politically motivated, particularly under pressure from Spain—had temporarily stalled the process.

The FATF had initially placed Gibraltar on its grey list following a critical report by Moneyval, the Council of Europe’s financial monitoring body. The report highlighted shortcomings in Gibraltar’s enforcement of regulatory sanctions and the execution of final confiscation orders.

In response, Gibraltar undertook a full-scale reform effort. By February 2024, FATF acknowledged that the territory had implemented all 40 recommendations outlined in its action plan. Although FATF was prepared to delist Gibraltar earlier this year, the decision awaited formal EU endorsement.

Gibraltar Government Reinforces Regulatory Commitments

Nigel Feetham, Gibraltar’s minister for justice, trade and industry, welcomed the EC’s decision, emphasising the jurisdiction’s long-term commitment to maintaining high regulatory standards.

“We remain fully committed to ensuring that the legislative and institutional improvements we’ve made are sustained and further strengthened,” he said.

Gibraltar’s progress mirrors that of Malta, another prominent iGaming jurisdiction, which was itself on the FATF grey list from June 2021 until June 2022. Both territories have faced intense international scrutiny, not least due to their role in the broader online gambling and financial services sectors.

The recent FATF update also saw the United Arab Emirates and the Philippines removed from the grey list, alongside Barbados, Jamaica, Panama, Senegal and Uganda. At the same time, a fresh wave of countries—including Algeria, Angola, Côte d’Ivoire, Kenya, Laos, Lebanon, Monaco, Namibia, Nepal and Venezuela—were added.

In light of continued criticism regarding transparency and consistency in FATF’s methodology, the European Commission noted that it bases its evaluations on technical data, information from FATF, bilateral exchanges, and on-site inspections. The Commission insisted that its assessments remain rigorous and impartial.

Implications for Gibraltar’s iGaming Sector

Gibraltar’s removal from the grey list would eliminate a reputational cloud that has hung over the territory for two years—particularly in sectors like iGaming, where regulatory credibility is a critical asset. The territory has long positioned itself as a reliable base for major gambling operators, offering a well-regarded legal framework and proximity to EU markets despite Brexit.