Ethics and governance in the European Financial centers

KPMG’s recent study among 224 banks from 55 countries found that banks’ spending on anti-money laundering (AML) systems and processes has risen by an average of 58 percent over the last three years. In North America and in the Middle East and Africa, spending has increased by 70 percent or more. These increases are far in excess of banks’ own predictions when KPMG Forensic carried out its last study in 2004, when respondents on average predicted an increase of 43 percent. The biggest spending continues to be on transaction monitoring and staff training costs.

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Last June the IMF issued a book that brings together conference papers in which participants discuss: information exchange for an effective anti–money laundering/combating the financing of terrorism (AML/CFT) regime, in terms of both standards and practices.

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The report is based primarily on work undertaken during a visit to Gibraltar during March 1–17, 2006.
The assessment team comprised Mr. R. Barry Johnston (Head), Mr. Salim M. Darbar, Ms. Tanya Smith,
Ms. Mariela Moreno (all MCM), Mr. Joseph Myers, Mr. Andrews Gors, and Ms. Joy Smallwood (all
LEG), Mr. Peter Hayward (consultant, for banking), Mr. Jorge Mogrovejo (consultant, Superintendency
of Banks and Insurance, Peru, for banking), and Mr. William McCullough (consultant, for insurance).

The main findings of the assessment are:
• Gibraltar has a well-regulated financial sector and the authorities have taken a number of steps to implement recommendations of the last IMF assessment in 2001.
• The assessment found a high standard of compliance with the Basel Core Principles and the Insurance Core Principles.
• While Gibraltar has done a good job of improving its AML/CFT regime to keep abreast of evolving standards, it needs to take a number of steps to update its legal and regulatory regime to reflect the revised FATF 40+9 Recommendations.
• The reputation of Gibraltar as a financial center will depend on maintaining the independence of the Financial Services Commission (FSC).


See the report