Overview
Gibraltar is a self-governing British Overseas Territory. UK, UN, and EU sanctions apply in Gibraltar. Gibraltar also has provisions for imposing autonomous sanctions but this power has not yet been used.
International/UK Sanctions
International sanctions (UK, EU, and UN sanctions) come into effect in Gibraltar under s 7 of the Gibraltar Sanctions Act 2019. The sanctions have effect in Gibraltar on the date on which they are intended to come into operation by the international body that has imposed them. Where UN or EU sanctions conflict with UK sanctions, UK sanctions take precedence.
Autonomous Sanctions
Gibraltar can impose its own financial sanctions and other restrictions under Part 3 of the Sanctions Act 2019 or the Terrorist Asset-Freezing Regulations 2011. The Chief Minister (with the consent of the Governor) may make sanctions regulations: (1) to comply with any international obligation; or (2) for any of the following purposes:
- further the prevention of terrorism/terrorism financing/proliferation of weapons of mass destruction in Gibraltar or elsewhere
- in the interests of the security of Gibraltar
- in the interests of international peace and security
- promote the resolution of armed conflicts or the protection of civilians in conflict zones
- provide accountability for/be a deterrent to gross violations of human rights
- promote compliance with international humanitarian law
- contribute to multilateral efforts to prevent the proliferation and use of weapons and materials of mass destruction
- promote respect for human rights, democracy, the rule of law and good governance
Any such designation will be posted on the Gibraltar Financial Intelligence Unit’s sanctions page. There are no current autonomous designations.
Legislation
Supervisory Bodies (Sanctions) (Enforcement) Regulations 2025
Sanctions (Amendment) Act 2024
Guidance
Gibraltar Financial Intelligence Unit – Financial Sanctions Guidance Notes
The National Coordinator for Anti-Money Laundering and the Combatting of Terrorist Financing – SANCTIONS ACT 2019 Sanctions against the Russian Federation
House of Commons Library – The UK’s Overseas Territories and sanctions against Russia
Licensing
The Chief Minister can issue licences under section 10 of the Sanctions Act 2019 where there are licensing grounds enabling the minister to do so, and where the conditions on those grounds have been met. The Minister can also create exceptions to autonomous Gibraltar sanctions regulations under section 31 of the Sanctions Act 2019.
The licensing grounds are:
- basic needs
- legal fees and disbursements
- fees or service charges for routine holding/maintenance of frozen funds/economic resources
- satisfaction of prior court judgments/arbitration decisions against the designated person/entity
- satisfaction of prior contractual obligations of the designated person
- extraordinary expenses
For sanctions exemption licence applications, contact the competent authority at [email protected].
Licences may come with reporting conditions within a particular time frame. A failure to comply with these reporting requirements may result in the revocation, suspension or termination of a licence or further restrictions being included in it. It may also result in a criminal prosecution or monetary penalty.
General Licences
UK General Licences do not extend to Gibraltar, which issues its own GLs (listed below):
Enforcement
The Gibraltar Chief Minister monitors compliance with financial sanctions. The Chief Minister also has the power to refer cases to law enforcement agencies for investigation and prosecution. Breaches of financial sanctions are criminal offences that can result in custodial sentences or monetary penalties. The maximum term of imprisonment of conviction on indictment is 10 years. There is no maximum fine.
Gibraltar autonomous sanctions regulations can make provisions for enforcement, including creating criminal offences for sanctions circumvention. Regulations may not provide for an offence to be punishable with imprisonment for a period exceeding (a) in the case of conviction on indictment, 10 years; (b) in the case of summary conviction, 12 months.
Screening Obligations
Under s. 8A of the Sanctions Act 2019, those involved in financial businesses must have adequate screening measures in place. Failure to comply with this requirement can, under s17 of the Supervisory Bodies (Sanctions) (Enforcement) Regulations 2025, result in:
- for firms that are not credit/financial institutions penalties amounting to 2x the amount of benefit derived from the breach (where the breach can be determined); or €1m
- for firms that are credit/financial institutions:
- entities – a penalty of €5m or 10% of the annual turnover according to the latest accounts
- individuals – a penalty of €5m
The following supervisory bodies are responsible for supervising and enforcing compliance with screening obligations:
- Financial Services Commission
- the Commissioner of Banking and the Banking Supervisor
- the Commissioner of Insurance and the Insurance Supervisor
- the Financial Secretary
- the Gambling Commissioner as defined in section 2 of the Gambling Act 2005
- the Office of Fair Trading
- HM Customs
- the Legal Services Regulatory Authority
Reporting
General Reporting requirement:
There is a requirement for natural and legal persons, entities, and bodies to supply the relevant competent authority as soon as practicable with any information that would facilitate compliance with the regulations.
Relevant Institution requirement
Section 7(4) and Schedule 4 to the Sanctions Act 2019 set out specific reporting obligations for a ‘relevant institution or relevant business or profession’. These apply to:
- a person licensed or authorised under the Financial Services Act 2019 to carry on regulated activity
- an undertaking that by way of business (i) operates a currency exchange office; (ii) transmits money (or any representation of monetary value) by any means; or (iii) cashes cheques that are made payable to customers
- a designated non-financial business or profession as defined by the Financial Action Task Force and not otherwise covered
- auditors
- casinos
- dealers in precious metals or stones
- estate agents
- external accountants
- independent legal professionals
- tax advisers
- trust/company service provider, operating in Gibraltar.
Relevant firms are required to report to the Financial Intelligence Unit, if they know or have reasonable cause to suspect that a person is a designated person, or has committed an offence under the legislation.
Reports of frozen funds and economic resources, information regarding a designated person, and notifications of credits to frozen accounts should be submitted to the Gibraltar Financial Intelligence Unit via its online reporting system (THEMIS). Reports regarding suspected breaches should be submitted in the same way.
For more information about the reporting process, contact the GFIU at [email protected].
Judgments
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Samuel Vidal Moses Cohen (as liquidator of Wardour Trading Limited) v Michael Nekrich and ANOR 2025/GSC/010
