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Jul 12 - OFT Launches Anti-Money Laundering and Counter-Terrorist Financing Regulation For Local High Value Dealers

Local businesses such a jewellers, builders, furniture shops and car salesmen will now have to declare any cash transactions of more than £8,000 in an attempt to crack down on money laundering activities that can be used to fund terrorism.

The Office of Fair Trading (OFT), in conjunction with the Ministry for Commerce, is raising awareness about the OFT’s recent appointment as a supervisory authority for high value dealers under the Proceeds of Crime Act 2015 (POCA).

POCA is a Gibraltar law aimed at preventing the abuse of the financial system for the laundering of illicit money and the financing of terrorism. As a result the Office of Fair Trading will be regulating high value dealers for compliance with their anti-money laundering and counter-terrorist financing obligations under POCA.

David Parody, the OFT’s National Coordinator, said that although the legislation has been in place for a while, the OFT will now be responsible of enforcement on these requirements.

He added: “We are now focusing on anti-terrorism and terrorism financing. The Brussels and Paris attacks crystallised the fight from money laundering in the old-fashioned sense of drug dealers and tax crimes and is being moved to the prevention on the loss of life, and that is what we are focusing on now.

“Terrorists need financing to do their business, to buy explosives and weapons they need, and that’s where the focus is now. A very proactive approach is needed now to mitigate the risks and that’s why, as part of the international standards Gibraltar subscribes to, there will now be more stringent enforcement by the Office of Fair Trading for dealers of high value goods.”

He added: “Cash is key in money laundering and that is why the emphasis is on cash. If we can put a good frontline defence on cash entering the system, that’s what we want to concentrate on.”

High value dealers are businesses that accept cash payments in any currency with a value equal to, or greater than, €15,000.00 in exchange for goods. The OFT will consider any cash transaction for goods which is equal to, or greater than £8000 (or any currency equivalents) as a high value transaction. Any business accepting such cash payments is required to comply with the obligations set out in POCA, keep records of all high value transactions received as from 1st July 2017 and submit annual reports to the OFT.

The OFT has created guidance notes and other documentation to assist local businesses in complying with these obligations. Businesses are encouraged to read these documents carefully and to take appropriate steps to comply with POCA.

These documents will be sent via mail to all identified high value dealers imminently, and can also be downloaded from the ‘AML/CFT’ section of the OFT’s website: http://www.oft.gov.gi/index.php/aml-cft. They can also get in touch with Elka Corbacho, Executive Officer for AML/CFT for help. 

Francis Muscat, the CEO for the Office of Fair Trading, said: “These are responsibilities the businesses will have to take very seriously, however, if they want to avoid going through these requirements, which in our view are absolutely essential in light of the global terrorism threat, and how important money laundering has become to that, the best way to avoid it is not to accept large cash payments above £8,000 and hopefully they won’t have to go through these stringent requirements.”

Businesses will have to comply with these guidelines, and failure to make the declarations or keeping records will have to pay “huge financial sanctions” before facing criminal records or even having their business licence withdrawn.

The OFT has also been appointed as a POCA Supervisory Authority for real estate agents in Gibraltar and is currently working on relevant guidance notes which will also be issued to this industry in due course. These appointments have been made in relation to the forthcoming evaluation of Gibraltar’s general anti-money laundering and terrorist financing measures by Moneyval.

For any further enquiries or question please contact the Office of Fair Trading on This email address is being protected from spambots. You need JavaScript enabled to view it. or on 20071700.

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