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 various sanctions over the years, notably significant sanctions on Syria in 2011 due to its violent government actions. While Syria was readmitted to the League in 2023, the status of these sanctions remains uncertain. Additionally, the League maintains a longstanding boycott of Israel, with varying enforcement among member states, and has historically restricted diplomatic relations with Israel, though some states have normalized ties.
In response to recent events, the Arab League called for punitive measures against Israel in 2024, highlighting its limited enforcement capabilities. Concurrently, the U.S. Treasury imposed sanctions on Hamas operatives and financial facilitators, targeting their revenue sources and investment networks. These actions reflect ongoing efforts to disrupt terrorist financing and uphold international sanctions.
Bribery & Corruption
Rating |
0 (bad) - 100 (good) |
|---|---|
| Transparency International Corruption Index | NA |
| World Bank: Control of Corruption Percentile Rank | 26 |
A September 2022 poll by the Coalition for Integrity and Accountability (AMAN) revealed 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 essential for business success remains widespread. Despite low reported instances of bribery, civil society and organizations like AMAN actively promote anti-corruption efforts and raise public awareness.
Economy
The economy of the Gaza Strip is severely constrained, with almost all economic activities coming to a complete standstill following the events of October 7, 2023. The region faces a staggering unemployment rate of 74 percent, exacerbated by the loss of jobs in Israel and the cessation of exports, leading to a significant decline in GDP. The ongoing conflict and restrictions on movement and access have further deteriorated the economic situation, making recovery and growth extremely challenging.
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 lack of a stable legal framework, compounded by the de facto governance of Hamas, creates significant barriers for private investment, with businesses facing coercion and inconsistent application of laws. Consequently, the potential for foreign direct investment remains extremely low, as the region grapples with high unemployment rates and a deteriorating economic environment.
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- Risk Analysis
- Corruption
- Economy
- Sanctions
- Narcotics
- Executive Summaries
- Investment Climates
- FATF Status
- Compliance
- Key Findings
