His Majesty’s Government of Gibraltar (HMGoG) has celebrated the nation’s removal from the EU’s financial crime grey list following a successful vote in the European Parliament earlier this week.
This move signals a turning point for Gibraltar, which has been aiming to be removed from the grey list since 2022. In 2024, the nation was denied removal alongside the United Arab Emirates (UAE), and the Middle Eastern nation has now joined the island in securing removal from the list.
Gibraltar – gambling and GDP
The removal of Gibraltar and the UAE from the grey list is important for their retrospective betting industries, the former of which is well established while the latter is emerging. Gambling is often seen as high-risk for money laundering, so strong rules are needed to keep the industry safe.
According to the UK parliament, around 25% of Gibraltar’s GDP comes from gambling. The island is also a business hub, with so many bookmakers and online casinos registered there that parliament also estimating that at least 75% of UK betting takes place ‘in or from’ Gibraltar.
Gibraltar has improved its systems to stop financial crime whereas the UAE, which is in the process of building its gambling market, will also need to keep strict controls in place. These steps help both places attract companies and stay in line with global standards.
The European Commission’s proposal to remove the British territory will come into effect following the proposal’s official publication within the Official Journal of the EU, as well as final approval from the European Council.
The amendments were first introduced by a Commission Delegated Regulation, and the UK Overseas Territory was one of the eight countries that had satisfied risk assessments from both the EU and the Financial Action Task Force (FATF) – the latter being the AML body of the G7 nations, and which has a greylist which the EU models its own on.
Removal from the EU’s grey list would see Gibraltar no longer considered a place of weakness for anti-money laundering (AML), counter-terrorism financing (CFT) and other financial crime protections.
Nigel Feetham, Minister for Trade, Justice and Industry, explained: “The news today that the European Parliament has rejected objections to the update of the EU list brings an end to the uncertainty about Gibraltar’s merited delisting which should have happened over a year ago following our delisting by the FATF.
“This is testament to the work undertaken by my Ministry to bring Gibraltar to the vanguard of the fight against money laundering and counter terrorist financing, and Gibraltar’s reputation as a world-leading financial centre has been rightfully restored.
“It is clear too that our engagement with partners in Brussels, both with the European Commission and the European Parliament, has worked to produce the result that we have worked so hard to obtain.
“Our work does not end here though. We will not rest on our laurels. We will continue to improve and are committed to maintaining the highest international standards and working constructively with our European and international partners.”
The UAE crossroads
The UAE removal comes at a pivotal time for the region as it continues to expand its gambling industry, following the launch of its Commercial Gaming Regulatory Authority (GCGRA) in 2023.
Like other Middle Eastern nations, the UAE is looking to diversify its economy and sees gaming as a good way to compliment its already massive tourism industry. The sector will be tightly controlled though, such as being confined to certain selected zones across the country and being guarded with geolocation technology.
Ahmed Ali Al Sayegh, a Minister of State in the UAE’s Foreign Ministry, added: “The UAE remains a reliable and strategic partner to the EU, committed to ensuring AML/CFT systems are not only robust, but also future-proof and capable of addressing emerging global threats.
“We look forward to unlocking the full potential of the UAE-EU partnership, fostering closer cooperation, enhanced prosperity and shared security for our regions and people.”
