EU Parliament clears Gibraltar’s removal from the high-risk third-country list, reinforcing regulatory credibility and opening doors to Schengen access
Gibraltar has secured a major regulatory and reputational milestone. The European Parliament has now formally rejected attempts to keep Gibraltar on the EU list of high-risk third countries, paving the way for its removal following a recommendation from the European Commission. This marks the final institutional step in recognising Gibraltar’s strong performance in addressing anti-money laundering (AML) and counter-terrorist financing (CTF) obligations.
This follows the Financial Action Task Force’s (FATF) decision in 2024 to remove Gibraltar from its grey list, after a period of increased monitoring. Together, these developments confirm what many in the financial and professional services sectors have already experienced on the ground: These developments reaffirm Gibraltar’s position as a well-regulated and internationally respected jurisdiction.
Background - From FATF Scrutiny to International Validation
In June 2022, Gibraltar was placed under increased monitoring by the Financial Action Task Force (FATF), which recognised that while the jurisdiction had made significant progress on a number of recommended actions, just two areas required further focus, namely, enforcement related to supervisory actions and the pursuit of final confiscation judgments.
In response, the Government of Gibraltar and relevant authorities implemented a coordinated response, delivering structural and operational improvements across the financial system. In February 2024, the FATF confirmed that Gibraltar had addressed both outstanding issues and had demonstrated that it is continuing to strengthen the effectiveness of its regime.
Gibraltar was therefore removed from the list of jurisdictions under increased monitoring.
That decision then formed the basis for the European Commission’s proposal to delist Gibraltar from the EU’s list of high-risk third countries under its Anti-Money Laundering Directive. That proposal was initially rejected in April 2024 by the European Parliament by what can only be described as a politically motivated determination to keep Gibraltar on the list but has now been confirmed by the European Parliament following the rejection of a last-minute amendment submitted, once again, by a group of MEPs led by a Spanish MEP of the far right Vox party.
This marks the culmination of another affirmation of Gibraltar’s regulatory maturity. It also clears the way for Gibraltar to be treated on par with other leading financial centres by EU-regulated entities.
What This Means for Business and Investment
Removal from both the FATF grey list and the EU’s high-risk third-country list means that Gibraltar is no longer subject to the enhanced due diligence and friction that typically accompany these designations.
Gibraltar-based financial institutions and investors continued to operate with confidence throughout the FATF monitoring period. However, the formal removal from both the FATF and EU high-risk third-country lists provides welcome clarity and simplifies cross-border processes, particularly in terms of compliance and due diligence requirements.
Gibraltar’s licensing and supervisory regimes for funds, cryptoassets and financial services have long been respected for their structure, accessibility and legal robustness. That standing is now reinforced by global and EU recognition, removing any residual procedural friction in dealing with EU-regulated entities.
For firms operating in digital finance — including crypto, blockchain and fintech — Gibraltar’s consistent appeal has been its combination of regulatory clarity, responsiveness and commercial alignment. These latest developments further confirm its status as a jurisdiction capable of balancing innovation with internationally recognised standards.
The Bigger Picture: A Unique Strategic Position
This regulatory development comes alongside a separate, but equally important, political milestone: the agreement in principle between the UK and the EU regarding Gibraltar’s post-Brexit relationship with the EU.
The framework agreement is set to deliver a unique outcome. Under its terms, Gibraltar residents will benefit from significantly enhanced mobility across the Schengen area. In practical terms, this means that residents of Gibraltar, unlike residents of mainland UK, will enjoy near full freedom of movement within the EU’s borderless travel zone.
When combined with Gibraltar’s existing UK market access (via the Gibraltar Authorisation Regime), this creates a highly distinctive position. Nowhere else offers the same combination of:
• UK-aligned financial services market access
• Legal and regulatory standards aligned with the UK and EU
• Physical and commercial access to the Schengen area
• A mature yet agile legal and professional ecosystem
For international financial and digital asset firms looking for a European base with global connectivity and long-term stability, Gibraltar’s proposition is increasingly difficult to match.
A Moment of Opportunity
These developments mark a turning point — not just for how Gibraltar is seen externally, but for what it can now offer to the global business community.
The FATF delisting confirmed the credibility of Gibraltar’s enforcement regime. The EU’s confirmation removes the final formal restriction within the single market. The political agreement with the EU adds long-term mobility and strategic access to the picture.
For business leaders, investors and entrepreneurs looking for a base that blends certainty with opportunity, there has never been a better time to look at Gibraltar.
At Hassans, we continue to advise clients across the financial, crypto, gaming, funds and private client sectors who choose Gibraltar for its integrity, access and adaptability. We would be happy to speak with you about what this new phase means for your business.
Author:
Aaron Payas, Partner