Monday, August 22, 2005

Risk of money laundering to Gibraltar “not at the point cash enters system,” says FSC

The Financial Services Commission (FSC) will not close its eyes to legitimate criticisms of the finance centre including allegations of money laundering, FSC Commissioner Marcus Killick has declared in an interview with the Chronicle.

Mr Killick said that the main risk of money laundering to Gibraltar comes in being used as part of “the process of hiding the source of the money after it has entered the financial system, via a bank in another country,” rather than as a point of entry for ‘black’ money.

“Criminals themselves,” he added, “are normally based outside Gibraltar.”

Mr Killick said that Gibraltar’s role is one of cooperation and exchange of information with jurisdictions where the original crime took place and for this reason “one would not expect many money laundering prosecutions to occur here.”

The Financial Services Commissioner said they regularly checked the anti-money laundering systems of local companies through on-site processes.

“We have required some firms to improve their anti-money laundering procedures and followed up that such improvements are made,” said Mr Killick. He added that they will also respond to any “unjustified criticism” in relation to allegations of money laundering.

Meanwhile in reply to Chronicle questions, a Gibraltar Government spokesman said the Gibraltar Financial Intelligence Unit (GFIU) is obliged both by EU Law and the Egmont Group to pass on intelligence to other jurisdictions either on request or spontaneously “and regularly does so.”

“This intelligence has certainly assisted in some investigations and may possibly impact on some future investigations,” said a Gibraltar Government spokesman.

The Government declined to reply to questions number 5, 7 and 8. (See Article link below)

Related Article & Links:

22 August 2005 - Chronicle interviews Head of FSC and spokesman for GFIU on Money Laundering

Financial Services Commission (FSC)

Gibraltar Co-ordinating Centre for Criminal Intelligence and Drugs/Gibraltar Financial Intelligence Unit (GCID/GFIU)

Egmont Group List of world financial intelligence units (FIUs)

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