meta_id 3164468

In May 2026, Gibraltar's Financial Intelligence Unit (FIU) published comprehensive guidance on identifying, assessing, and understanding proliferation financing (PF) risk for small states and territories, aligned with Financial Action Task Force (FATF) Recommendations 1, 7, and 15. The guidance draws on data, technical analysis, and experiences from the Small States and Territories Working Group (STWG), which includes Andorra, Gibraltar, Guernsey, the Holy See/Vatican City, the Isle of Man, Jersey, Liechtenstein, Malta, Monaco, and San Marino. The guidance defines PF as the raising, moving, or making available of funds, assets, or economic resources to persons or entities for weapons of mass destruction (WMD) proliferation purposes, including dual-use goods and technologies. It identifies key vulnerabilities specific to small states and territories, particularly those serving as international finance centres (IFCs), including risks from Trust and Company Service Providers (TCSPs), Virtual Asset Service Providers (VASPs), maritime sectors, and cyber-enabled threats. The document highlights that small states face distinct challenges due to their open financial systems, limited institutional capacity, and potential exploitation as transit points for proliferation-related funds. It emphasises emerging threats including cyber-heists targeting cryptocurrency exchanges, artificial intelligence-enabled sanctions evasion, and geopolitical shifts affecting the Russia-Iran-Democratic People's Republic of Korea nexus. The guidance provides actionable recommendations for jurisdictions, including implementing robust targeted financial sanctions frameworks, establishing inter-agency coordination mechanisms, conducting sectoral risk assessments, strengthening export controls on dual-use goods, and enhancing public-private partnerships. It stresses the importance of data-driven decision-making, international cooperation, and continuous capacity building to effectively counter proliferation financing while maintaining proportionate, risk-based approaches suited to smaller jurisdictions' resource constraints.