The United Kingdom has expressed dismay following the European Parliament’s accusation that Gibraltar is undermining sanctions against Russia. This development occurred during a vote to maintain the British territory’s position on the EU’s money-laundering watchlist, despite the European Commission’s decision to remove it.
A substantial majority of 490 Members of the European Parliament (MEPs) voted against removing Gibraltar, along with other territories such as the UAE, Barbados, Panama, and Uganda. The approved text by the European Parliament cited “important and recent evidence” suggesting these territories’ insufficient efforts in addressing or even facilitating the evasion of sanctions against Russia. It also suggested that these territories could serve as platforms for circumventing Russian sanctions.
A spokesperson for the U.K. government, speaking on condition of anonymity, rebuffed the claim, deeming it “completely inaccurate and unsubstantiated” to imply that Gibraltar undermines sanctions efforts against Russia. The spokesperson emphasized that U.K. sanctions are fully applied and enforced in all U.K. overseas territories and crown dependencies.
Both the European Commission and the EU’s diplomatic service had advocated for removing Gibraltar and other territories from the list. However, the MEPs’ vote means Gibraltar will remain on the EU’s high-risk countries list, subjecting EU banks to conduct enhanced due diligence on cash transfers with the territory.
The Financial Action Task Force removed these countries from its watchlist in February, prompting the Commission’s initiative to remove them from the EU’s list as well.
In response to the vote, the government of Gibraltar criticized the European Parliament’s stance, labeling it as “clearly not the result of any technical assessment” and influenced by politics, specifically mentioning certain Spanish MEPs and political groups.
This development occurs amid ongoing negotiations between the EU and the U.K. regarding the final details of an agreement on Gibraltar, which was excluded from the overall Brexit deal at Spain’s insistence. Recent discussions between UK Foreign Minister David Cameron and Gibraltar officials have reportedly made significant progress, with both parties aiming to conclude the deal in the coming weeks.
Additionally, a separate text referring to Gibraltar as a “colony” of the U.K. was rejected by EU lawmakers, with the U.K. government rejecting this characterization as outdated.
