Gaza Strip Country Summary
Sanctions
US and Israel have issued guidelines re transactions with Palestine
FATF AML Deficient List
No but Mutual Evaluation not yet undertaken
Terrorism
Corruption
US State ML Assessment
Criminal Markets (GI Index)
EU Tax Blacklist
Offshore Finance Center
Please note that although the below Summary will give a general outline of the AML risks associated with the jurisdiction, if you are a Regulated entity then you may need to demonstrate that your Jurisdictional AML risk assessment has included a full assessment of the risk elements that have been identified as underpinning overall Country AML risk. To satisfy these requirements, we would recommend that you use our Subscription area.
If you would like a demo of our Subscription area, please reserve a day/time that suits you best using this link, or you may Contact Us for further information.
Anti Money Laundering
FATF Status
The West Bank/Gaza Strip is not on the FATF List of Countries that have been identified as having strategic AML deficiencies
Compliance with FATF Recommendations
A Mutual Evaluation Report relating to the implementation of anti-money laundering and counter-terrorist financing standards has not yet been undertaken for the West Bank/Gaza Strip.
Sanctions
The Arab League has imposed sanctions on Syria, including cutting off transactions with its central bank and freezing assets related to President Bashar al-Assad's government. Additionally, the League has a systematic boycott of Israel aimed at isolating it economically, which includes prohibiting the importation of Israeli goods and services and maintaining a blacklist of firms that do business with Israel.
In response to recent Hamas attacks, the U.S. Treasury Department has sanctioned key Hamas operatives and financial facilitators, targeting their investment portfolio and revenue sources. These actions are part of a broader effort to disrupt Hamas's financing and include designations of individuals involved in managing funds and virtual currency exchanges linked to the group.
Bribery & Corruption
| Rating | 0 (bad) - 100 (good) |
|---|---|
| Transparency International Corruption Index | NA |
| World Bank: Control of Corruption Percentile Rank | 25 |
A September 2022 poll indicates that the Palestinian public perceives favoritism and nepotism as the most prevalent forms of corruption, particularly within government institutions. While the Anti-Graft Law of 2005 aims to combat corruption, the belief that access to power is necessary for business success remains widespread. Despite low reported instances of bribery, civil society and organizations like the Coalition for Integrity and Accountability (AMAN) actively promote anti-corruption efforts and raise public awareness.
Economy
The economy of the Gaza Strip has come to a complete standstill following the events of October 7, 2023, exacerbating an already dire situation characterized by high unemployment rates, which reached 74 percent in the fourth quarter of 2023. The region is heavily reliant on Israel for trade, with 90 percent of exports directed there, and has faced significant constraints due to movement restrictions and a lack of access to external markets, resulting in a severe economic contraction.
The investment climate in the Gaza Strip is severely constrained due to ongoing conflict and restrictions on movement and access, which have led to a complete standstill of almost all economic activities. The lack of a stable legal environment, compounded by the de facto governance of Hamas, deters private investment, as businesses face inconsistent application of laws and potential coercion. Additionally, the aftermath of the October 7 attacks has exacerbated the already dire economic situation, with exports ceasing entirely and significant challenges anticipated in reconstruction and recovery efforts.
Buy Full Gaza Strip Report
$125 one time payment
- Risk Analysis
- Corruption
- Economy
- Sanctions
- Narcotics
- Executive Summaries
- Investment Climates
- FATF Status
- Compliance
- Key Findings
