Financial Action Task Force (FATF)

The Financial Action Task Force (FATF) is an intergovernmental organisation established to develop and promote policies to combat money laundering, terrorist financing, and other financial crimes. Founded in 1989, the FATF sets international standards for financial transparency and regulatory compliance, ensuring that countries and financial institutions follow robust anti-money laundering (AML) and counter-terrorist financing (CTF) measures.

FATF’s recommendations serve as a global benchmark for jurisdictions, requiring them to implement legal, regulatory, and operational frameworks to detect and prevent financial crimes. For businesses, this translates into compliance obligations such as customer due diligence, Know Your Customer (KYC) protocols, and regular reporting to regulatory authorities.

In Gibraltar, FATF standards play a critical role in maintaining the jurisdiction’s reputation as a well-regulated financial centre. Financial institutions and corporate service providers in Gibraltar are required to comply with these standards by implementing strong AML measures, conducting risk assessments, and reporting suspicious activities.

For businesses and individuals, compliance with FATF standards ensures legal adherence and protects against reputational risks. Non-compliance can result in penalties, loss of market access, or inclusion on the FATF’s “grey list” of jurisdictions under increased monitoring. By aligning with FATF recommendations, Gibraltar continues to foster trust and integrity in its financial systems.