Regulation

Gibraltar is recognised as one of the best regulated offshore finance centres in the world.

Regulation is exercised by the Gibraltar Financial Services Commission which is responsible for the licensing and supervision of all companies and individuals who offer financial services or products to the public from Gibraltar. The Commission comprises eight members who are appointed by the Governor with the approval of the Foreign and Commonwealth Secretary of the United Kingdom. The Commission is independent of the local government and finance industry. In addition its workings are subject to independent audit.

The Government of Gibraltar has introduced tough legislation to combat money laundering on an all crimes basis. This legislation is up to UK and EU standards.

These high regulatory standards have been publicly confirmed by the UK government.

The anti-money laundering regime in place in Gibraltar has recently been endorsed by the Financial Action Task Force. The regulation and supervision of financial services was also endorsed by the IMF in a report dated October 2001.

Legal

Gibraltar’s law is based on common law and the rules of equity, as in England. The application of these general principles and certain specific enactments of English law are covered by the Application of English Law Ordinance 1962. Statute law is mostly based on ordinances passed by the Gibraltar Parliament. Only UK qualified barristers and solicitors may practice law in Gibraltar. The legal system therefore embodies the advantages and security of English law which is generally regarded as being particularly appropriate for finance centre activities.