LSRA’s Gibraltar ‘Risk Scoring Policy’ introduces a refined risk-based methodology, clearer supervisory guidance, and stronger alignment with AML/CFT/CPF standards to better detect and mitigate FC risks

The policy explains how the LSRA applies a risk‑based approach—combining assessments of technical compliance (quality of policies, procedures, client due diligence, SARs, etc.), effectiveness in preventing financial crime and sanctions evasion, and materiality (the likelihood and impact of failures)—to assign an overall risk score to each firm. These risk scores help the LSRA categorize firms by risk level and determine appropriate supervisory actions, ensuring targeted oversight of legal practices engaged in relevant financial activities…