Gibraltar to be removed from the EU list of high-risk countries

Yesterday the European Commission (the “Commission”) adopted a Delegated Regulation amending Delegated Regulation 2016/1675 (the “Regulation”) as regards deleting Gibraltar (as well as other counties) from the list of high-risk countries identified under the Regulation (the “List”).

Since the latest amendments to the Regulation, on 23rd February 2024, the Financial Action task Force (“FATF”) removed Gibraltar (as well as other countries) from the FATF list of countries under increased monitoring (Grey List) following the implementation of the respective actions plans that Gibraltar had agreed with the FATF.

Following the measures implemented to address the action plan agreed with the FATF, the Commission’s assessment has concluded that Gibraltar no longer has strategic deficiencies in its respective anti-money laundering (AML) and Combating the Finance of Terrorism (CFT) frameworks and does not pose a significant threat to the financial system of the EU. The Commission therefore considered it appropriate to delete Gibraltar from the List.

The adopted Delegated Regulation enters into force on the twentieth day following its publication in the Official Journal of the EU.

The implications of this development extend beyond regulatory compliance. Gibraltar’s removal from the List reaffirms its status as a reputable and trustworthy financial hub, thereby bolstering investor confidence and attracting businesses seeking a secure and compliant jurisdiction for their operations.

One of the key factors contributing to Gibraltar’s successful removal from the List is its proactive approach to dealing with international stakeholders and adopt measures that align with evolving global AML/CFT standards. By meeting the stringent requirements set forth by the FATF and Commission, Gibraltar reinforces its pivotal role in facilitating legitimate economic activities whilst safeguarding against illicit financial flows.

It is essential to underscore the importance of Gibraltar’s removal from the List in the broader context of international finance. As the global finance landscape continues to evolve, jurisdictions must adapt and strengthen their regulatory frameworks to mitigate effective risks. Gibraltar’s efforts serve as a beacon of progress and exemplify the positive outcomes achievable through cooperation between regulatory authorities and the private sector.

Looking ahead, Gibraltar must remain vigilant and proactive in maintaining its regulatory compliance standards, continuing collaboration with international partners, ongoing monitoring of emerging threats, and investments in technological solutions will be essential to sustaining its reputation as a trusted financial centre.

ISOLAS Partner Stuart Dalmedo reacted to the news by saying “The removal of Gibraltar from the List is a testament to the jurisdiction’s unwavering dedication to regulatory compliance and its proactive stance on combating financial crime. This development is a significant step forward for Gibraltar, signalling to investors and businesses worldwide that Gibraltar remains a trustworthy and compliant jurisdiction for conducting business”. 

ISOLAS LLP is proud to welcome two up and coming lawyers to its growing team: Kyle Bautista and David Garcia

Kyle Bautista has been enrolled as a Solicitor and David Garcia has been admitted as a Barrister of the Supreme Court of Gibraltar following their respective legal training.

Kyle graduated from the University of Reading with First-Class Honours in History and Politics in 2020. He furthered his education at Cardiff University with a Graduate Diploma in Law. Kyle subsequently completed a combined Legal Practice Course and Masters in Professional Legal Practice at the University of Law.

David graduated from the University of York with a First-Class Honours law degree in 2021. He then successfully completed the Bar Vocational Studies programme at City, University of London, and was called to the Bar of England and Wales by the Honourable Society of the Middle Temple in 2022.

David and Kyle undertook the Gibraltar Professional Skills and Conduct course at the University of Gibraltar along with the Professional Certificate of Competence in Gibraltar Law. They completed their training at ISOLAS LLP solidifying their local expertise.

David and Kyle work alongside Partner the Honourable Neil F Costa focusing on diverse contentious matters, particularly in public law, including human rights and administrative law, employment law, civil disputes, including contractual and personal injury claims, and criminal litigation.

CEO Marcus Killick expressed his enthusiasm for the new additions: “We are truly delighted to welcome Kyle and David to our growing team. Their skills and commitment are already proving invaluable to the ISOLAS team, and we have full confidence they will continue to thrive and contribute significantly in the years to come.”

Gibraltar Whitelisted by the FATF

Gibraltar has today been added to the Financial Action Task Force (FATF) white list following Gibraltar having satisfied its action plan.

This significant achievement recognises Gibraltar’s complete commitment to implementing the highest standards of anti-money laundering (AML) and combating the financing of terrorism (CFT).

The FATF white list is made up of jurisdictions deemed to have robust AML/CFT regimes in place, effectively mitigating risks associated with financial crime. Gibraltar’s inclusion signifies the international community’s confidence in its efforts to foster a safe and transparent financial environment.

Chief Minister the Hon Fabian Picardo KC MP and Minister for Justice, Trade and Industry the Hon Nigel Feetham KC MP welcomed the news recognising the work carried out by all the Government agencies and authorities, and the private sector for their wholehearted support.

The Government has also noted the contribution of Senior Partner Albert Isola CBE, the former Minister For Financial Services to the whitelisting process.

Being added to the FATF white list confirms Gibraltar’s commitment to upholding the highest standards and contributing to a secure and reliable financial ecosystem for all. The Hon Nigel Feetham added “We have not only focused on our delisting, but on the work that we have already started to plan for the next evaluation, in three 3 years, to ensure we remain fully in line with the FATF standards.”

ISOLAS Senior Partner The Hon Albert Isola CBE reacted to the news by saying “My congratulations to Fabian Picardo MP KC and Nigel Feetham MP KC on their magnificent contribution to this news. This has required serious commitment and is wonderful news for Gibraltar and our various commercial sectors.”

ISOLAS trainees called to the Bar of Gibraltar.

We are delighted to announce that Kyle Bautista, Solicitor, and David Garcia, Barrister-at-Law, who completed their training course with ISOLAS, were enrolled and admitted to the Supreme Court of Gibraltar.

Kyle and David will now further their careers in their specialist areas of practice within the Firm.

Partner The Hon Neil F Costa said, “We are really pleased to have Kyle and David join our team. They are both exemplary lawyers who are exceptionally bright and who are already proving to be indispensable assets to the firm. We look forward to seeing them progress as part of the ISOLAS team.”

Chambers & Partners Global Rankings 2024

ISOLAS Lawyers Shine in Chambers & Partners Global Rankings, Demonstrating Dedication and Growth.

ISOLAS LLP’s remarkable performance shines through in their Band 1 rankings across multiple practice areas. Their continued success within Chambers Global’s areas of General Business Law (GBL), Dispute Resolution and Shipping, signifies the firm’s deep expertise and versatility, capable of catering to diverse legal needs. The rankings are testaments to their unparalleled service in these specific fields.

Beyond firm-wide recognition, individual accolades further cement ISOLAS LLP’s reputation for excellence.

Senior Partner Peter Isola’s exceptional record as a Band 1 lawyer for over 18 years speaks volumes of his leadership and impact within the legal community.

Similarly, Chambers continued recognition of Mark Isola KC, Band 2, James Montado, Band 2, Steven Caetano, Band 2 and Jonathan Garcia, Band 3 underscores the depth of talent and unwavering dedication present within the firm.

Two standout performances come from The Hon Neil Costa and Samantha Grimes. The Hon Neil Costa, who as a new entry secures a Band 3 position in Dispute Resolution whilst Samantha Grimes returns to Dispute Resolution from her banding in General Business Law. This highlights the firm’s top legal talent, ensuring they have the resources to serve clients effectively.

Further bolstering the team’s strength are Christian Caetano and Sarah Bray, who have both made the jump from the “Up & Coming” to Band 3 in GBL. This significant ascent speaks volumes about their expertise, solidifying their positions as sought-after legal professionals.

Adding to the momentum is Christian Hernandez, who now ranks Band 2 within GBL and Spotlight in Shipping. This accomplishment reflects his consistent growth and solidifies his reputation as a respected legal figure within his practice area.

“The recognition from Chambers and Partners affirms our unwavering commitment to delivering outstanding results for our clients,” said ISOLAS CEO Marcus Killick. “We are confident that this momentum will continue, and we look forward to celebrating further successes in the future. Congratulations to all!”

ISOLAS LLP welcomes Shakira Marsh-Finch to its legal team as an Associate.

Shakira graduated as a law student from Birkbeck, University of London and completed the Legal Practice Course (LPC) at The University of Law, followed by the Professional Skills Course (PSC) in London.

She completed her training contract at ISOLAS LLP, whilst undertaking the Professional Certificate of Competence in Gibraltar Law.

Shakira was approved, admitted, and enrolled as a Solicitor of the Supreme Court of Gibraltar in November 2023, and is a dual qualified solicitor of England & Wales and Gibraltar. Shakira’s practice sees her working alongside Partner Jonathan Garcia, assisting the team on Fintech and Funds & Investment matters.

Before joining ISOLAS, Shakira worked as a criminal, fraud and civil defence Solicitor at Bark&Co. a London law firm based in the heart of the City of London where she was involved in defending allegations brought by the Financial Conduct Authority (FCA), Serious Fraud Office (SFO) and fraud-related criminal & civil charges in London.

ISOLAS LLP CEO Marcus Killick said:
“As a trainee Shakira was already a great asset to the team and an exemplary lawyer. I am delighted to welcome her into the team in an associate capacity, and very much look forward to seeing her progress as part of the ISOLAS team.”

Shakira added : “After successfully completing my training contract at ISOLAS, I am delighted to join the firm as an associate, and I look forward to furthering my career and practice within the firm delivering top-tier, legal services to our clients. I would like to extend my thanks to everyone at ISOLAS for their continued guidance, encouragement, and support.”

ISOLAS Team consider the new Fair Trading Act 2023 for Members of the GFSB.

ISOLAS Partner and Associate, Stuart Dalmedo and Louise Anne Turnock took to the stage to review the intricacies of the Fair Trading Act 2023 for members of the Gibraltar Federation of Small Businesses (GFSB). The Act, which has been in effect since October 2023, has brought about significant changes impacting businesses across the Rock, and understanding its nuances was paramount for the GFSB’s membership. The presentation provided a succinct overview of the Act’s key objectives.

The GFSB members were eager to engage, asking the speakers questions throughout the session. Concerns ranged from the practical implementation of specific provisions to the potential impact on existing business models and policing. The ISOLAS team addressed every question demonstrating their in-depth knowledge of the Act and its intricacies.

This event exemplified ISOLAS’ commitment to supporting Gibraltar’s business community. ISOLAS stands ready to provide its clients with the expertise and support they need to thrive in the new era of consumer protection and fair trade.

We would like to thank the GFSB for the opportunity to present to their membership.

If you have any questions or want to know more please contact Stuart at stuart.dalmedo@isolas.gi or Louise Anne at louise.turnock@isolas.gi

 

Gate granted DLT Provider permission

Gate, a leading crypto services provider known for its Gate.io exchange, announced that Hippo Capital Co Limited has been granted permission by the Gibraltar Financial Services Commission (GFSC) to operate as a Distributed Ledger Technology (DLT) Provider. As a result, it can now provide broker/dealer services and virtual asset custody services.

This permission means Hippo Capital is in compliance with all ten regulatory principles laid out by the GFSC. Created to protect consumers and businesses when transmitting or storing assets on distributed ledgers, the ten principles outline comprehensive risk management processes, honest and fair practices, exceptional customer care standards, and strict AML/CFT/CPF measures, among other guidelines that proactively protect consumers and businesses.

Following the granting of permission, which was obtained in partnership with ISOLAS LLP, Hippo Capital can begin introducing high-quality and secure services, aiming to offer professional virtual asset services customised for consumers, professionals, and institutions in the region.

Dr. Lin Han, founder and CEO of Gate, said: “We are more than grateful for the GFSC’s permission to offer high-quality virtual asset services in Gibraltar. The Hippo Capital team is eager to set the bar high with safe and reliable services that exceed regulatory expectations. We applaud the GFSC’s framework for increasing trust and protection while welcoming innovation and growth in the blockchain sector. Special thanks also to the ISOLAS LLP team for their valuable support.”

Hippo Capital’s permission to operate in Gibraltar marks another milestone for Gate in expanding its European footprint. Gate will continue its compliance-centric European and global expansion to serve more users and professionals with highly secure and dependable virtual asset and blockchain services.

Jonathan Garcia, the Partner at ISOLAS LLP who heads up the firm’s Fintech practice, commented: “The objective of the DLT framework has always been to develop a purpose-built appropriate regulatory framework that not only provides regulatory certainty for firms using nascent technology for dealing with new asset classes but also seeks to protect the interests of the users of those businesses.

“Gibraltar has always aimed to set an extremely high bar to entry and in that context, it’s a pleasure to have worked with the Hippo Capital team in meeting all of these requirements, and a pleasure to welcome them to Gibraltar. Many congratulations to them on this milestone in their continued development.”

 

Christian Caetano contributes Gibraltar Insurance Chapter to Thomson Reuters Regulatory Intelligence Guide

Isolas LLP Partner, Christian Caetano, has once again been asked to contribute the Gibraltar Insurance Chapter to Thomson Reuters Regulatory Intelligence platform, providing an update on the latest developments affecting Gibraltar’s insurance sector.

The Gibraltar Chapter addresses some of the recent legislative changes affecting Gibraltar’s insurance industry, as well as ongoing developments in respect of the Gibraltar Authorisation Regime (GAR) regarding access to the UK market for Gibraltar insurers and other regulated firms. More broadly, the Chapter outlines some of the key requirements of the Financial Services Act for potential insurance company applicants seeking authorisation from the Gibraltar Financial Services Commission (GFSC), together with applicable fees and capital requirements.

Christian commented as follows:

“I am very pleased to have been asked to contribute the Gibraltar Chapter for Thomson Reuters Regulatory Intelligence Insurance Guide. The past year has brought about a number of exciting developments within Gibraltar’s insurance industry, as well as more widely within the local financial services sector.

We also continue to see significant M&A activity within the insurance sector, as well as interest from new market entrants to Gibraltar. This is in no small part due to the ability of GFSC authorised firms to passport services directly into the United Kingdom pursuant to unique, bilateral, market access arrangements. It has also been widely reported that in the region of 30% of all UK based motor insurance premiums are now underwritten by Gibraltar insurers. Substantial growth is also being seen in other areas, such as travel insurance and pet insurance.

A key component of Gibraltar’s overall business proposition continues to be the jurisdiction’s extremely capable insurance management firms which can provide an array of operational, accounting and other functions to Gibraltar insurers, intermediaries and MGAs. The services offered by insurance managers should therefore attract particular interest from new start-ups and insurtechs.

Lastly, the Chapter covers Gibraltar’s ability to quickly enact legislative changes in order to seek out new opportunities. This includes the new Dual Captive Regime which His Majesty’s Government of Gibraltar is seeking to introduce shortly. Other exciting innovations in the sector are also expected over the coming months and years which, together with the anticipated implementation of the Gibraltar Authorisation Regime (GAR), will undoubtedly continue to cement Gibraltar as a stronghold for excellence in insurance and financial services.”

Thomson Reuters Regulatory Intelligence guides provide exclusive news, analysis, and practical guidance from a global team of regulatory compliance experts and journalists. The guide is available for subscribers only here, and Christian may be reached directly at christian.caetano@isolas.gi 

STEP – Business Families Global Steering Committee

ISOLAS Partner, and Gibraltar’s Branch Chairman, Adrian Pilcher, was recently elected to STEP’s Business Families Global Steering Committee.

Established in 2007, the Business Families Global Steering Committee focuses on what makes business families distinct, their challenges and how to best address them.

STEP is a global professional body, with more than 21,000 members comprising lawyers, accountants, trustees and other practitioners that help families plan for their futures.

Read more here .. Business Families Global Special Interest Group | STEP