Gibraltar being taken off the FATF (Financial Action Task Force) grey list can bring several benefits to the property market, here's the top 5 reasons why:
1. Improved reputation:
Being on the FATF grey list indicates that an area has deficiencies in its anti-money laundering (AML) and counter-terrorist financing (CTF) measures. Being removed from this list signifies that Gibraltar has addressed these deficiencies, improving its reputation as a transparent and compliant jurisdiction for property investments.
2. Increased investor confidence:
Investors tend to be more cautious when investing in jurisdictions with inadequate AML and CTF frameworks. Gibraltar's removal from the grey list reassures investors that their investment is made in a well-regulated and secure environment, boosting their confidence and attracting more capital into the property market.
3. Access to international financial services:
Being on the FATF grey list can limit access to international financial services for Gibraltar-based businesses, including property developers and investors. Removal from the list opens up opportunities for easier access to these services, such as cross-border transactions, financing, and insurance, benefiting the property market.
4. Attraction of foreign investment:
Many international investors and institutions have strict compliance policies that restrict their engagement with jurisdictions on the FATF grey list. Gibraltar's removal from the list makes it a more attractive destination for foreign investment, potentially leading to a surge in property investment from overseas buyers and institutions.
5. Stabilization of property prices:
The uncertainty caused by being on the FATF grey list can lead to a cautious property market, with fluctuations in prices due to limited liquidity and investor activity. Gibraltar's removal from the list can bring stability and growth to property prices as more investors enter the market, increasing demand and reducing volatility.
Overall, Gibraltar's removal from the FATF grey list improves its reputation, boosts investor confidence, increases access to financial services, attracts foreign investment, and stabilizes property prices. These factors collectively contribute to the growth and development of the property market in Gibraltar.
