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.
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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 to isolate it economically, which varies in implementation among member states.
Following the recent invasion by Hamas into Israel, the U.S. Treasury Department sanctioned ten key Hamas operatives and financial facilitators. These actions aim to disrupt Hamas's revenue sources and target its investment portfolio, which has allowed its leaders to live in luxury while ordinary Palestinians face economic hardships.
Bribery & Corruption
| Rating | 0 (bad) - 100 (good) |
|---|---|
| Transparency International Corruption Index | NA |
| World Bank: Control of Corruption Percentile Rank | 26 |
A September 2022 poll indicates that the Palestinian public perceives favoritism and nepotism as the primary forms of corruption, particularly within government institutions. While the Anti-Graft Law of 2005 aims to combat corruption and has led to the establishment of an anti-corruption court and commission, the belief that access to power is essential for business success remains widespread. Despite low reported instances of bribery compared to neighboring countries, civil society organizations like the Coalition for Integrity and Accountability actively promote anti-corruption efforts.
Economy
The economy of the Gaza Strip has been severely impacted by ongoing conflict and restrictions, leading to a complete standstill of almost all economic activities following the events of October 7, 2023. The unemployment rate in Gaza reached 74 percent in the fourth quarter of 2023, exacerbated by the loss of jobs in Israel and heightened movement restrictions. The region's economic situation is characterized by a heavy reliance on imports, with a significant trade deficit, and a lack of foreign direct investment due to political and economic instability.
The investment climate in the Gaza Strip is severely constrained due to ongoing conflict and political instability, particularly following the events of October 7, 2023, which led to a complete halt of economic activities. The legal environment is inconsistent, with the Hamas-led government not consistently applying Palestinian Authority regulations, creating significant deterrents for private investment. Additionally, the lack of reliable infrastructure and the absence of a functioning legal framework further complicate the prospects for foreign direct investment in the region.
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- Risk Analysis
- Corruption
- Economy
- Sanctions
- Narcotics
- Executive Summaries
- Investment Climates
- FATF Status
- Compliance
- Key Findings
