The Government of Gibraltar has today published new international guidance designed to help small states and territories better understand and manage the risk of proliferation financing, one of the most complex and least well-understood elements of the global financial crime framework.

The paper, Guidance on Identifying, Assessing and Understanding the Risk for Proliferation Financing in Small States and Territories [EH1.1], has been produced by the Small States and Territories Working Group and was co-led and co-authored by Gibraltar and the Isle of Man. It was formally presented to the MONEYVAL plenary in December 2025, marking a significant contribution by Gibraltar to international standard-setting and peer learning.

Proliferation financing refers to the movement or use of funds and other assets to support the development, acquisition or movement of weapons of mass destruction and related materials. While it is a core part of the international standards set by the Financial Action Task Force, it is widely recognised as an area where many jurisdictions, particularly smaller ones, struggle to build expertise. This is often because proliferation financing cases are rare, highly complex and usually transnational, meaning risks can exist even where no domestic cases have been identified.

The guidance responds directly to this challenge. It sets out a practical, proportionate framework to help smaller jurisdictions identify their specific vulnerabilities, understand how proliferation financing risks may arise in sectors such as financial services, shipping, trade, trust and company services and virtual assets, and design risk-based mitigations that are realistic within smaller administrations. It makes clear that a lack of cases should not be interpreted as a lack of risk, and that effective controls are essential to protecting both national and international security.

Although developed by jurisdictions that participate in MONEYVAL, the paper has been deliberately written for a much wider audience. Its findings and methodology are intended to be useful to small states and territories globally, including those outside Europe, that share similar characteristics such as open economies, international financial centres, maritime activity or limited access to specialist intelligence.

The Small States and Territories Working Group brings together jurisdictions including Andorra, Gibraltar, Guernsey, the Holy See/Vatican City, the Isle of Man, Jersey, Liechtenstein, Malta, Monaco and San Marino. It was established to allow smaller jurisdictions to pool expertise, share experience and develop tailored approaches to financial crime risks that are often designed with much larger economies in mind. The proliferation financing project was co-led by the Isle of Man and Gibraltar, reflecting a shared commitment to international standards and practical effectiveness.

Minister for Justice, Trade and Industry, Nigel Feetham KC MP, said: "Proliferation financing is one of the most serious and least visible financial crime threats we face. It does not always present through obvious cases, particularly in smaller jurisdictions, but the consequences of getting it wrong are profound. This guidance reflects Gibraltar’s commitment to playing a responsible role internationally, sharing our experience and learning from others, and ensuring that even small jurisdictions have the tools they need to meet global expectations."

He added: "I am proud that Gibraltar co-led this work with the Isle of Man and that it was presented at the MONEYVAL plenary. It demonstrates the value of collaboration between small jurisdictions and shows that we can make a meaningful contribution to strengthening the global response to financial crime and proliferation risks."

The guidance is publicly available and can be found on the Gibraltar Financial Intelligence Unit (GFIU) website at https://gfiu.gov.gi/uploads/docs/publications/STWG%20PF_May2026_final.pdf

Gibraltar continues to strengthen its counter-financial crime framework in line with international standards, working closely with partners at home and abroad to protect the jurisdiction's reputation as a well-regulated and responsible international finance centre.