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Gibraltar: Law of Offshore

Banking Law

Financial services in Gibraltar are regulated by the Financial Services Commission. The Commission introduced important changes to the way it supervises locally incorporated banks and non-EEA branches in 2002.

Within this time the FSC had been rolling out a risk based approach to supervision, where the supervisory team evaluates an institution in terms of the risks posed to an institution in the way it does business or the type of business it is in. This new approach to supervision aims to focus supervisory resources on the areas deemed to be high risk for an institution in order to ensure that the right controls and procedures are in place to mitigate the risks or where corrective action is required by an institution.

Banking regulation is exercised under the Banking Ordinance 1992 (as updated).

Banks with licenses issued by other EU jurisdictions have only to notify the Gibraltar authorities before commencing business there; banks which require Gibraltarian authorisation and licenses must conform to criteria set out below.

Licensed banks must maintain a solvency ratio of 10%. There is an annual fee payable to the Financial Services Commission.

Banks providing local services are taxable on their profits in the same way as ordinary companies.

 

 

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