Gibraltar banking sector is regulated by Financial Services Commission according to the standards set in Banking Ordinance of 1992. Financial Services Commission is focused on maintaining banking stability to sustain that image of Gibraltar as a secure regional financial center. In 2002 the commission introduced risk based approach to banking supervision. This method involves evaluating institutions based on risk due to the activity a firm pursues.

Gibraltar’s financial supervision in many aspects resembles UK supervisory standards. For instance, money laundering laws are based on European Union directives that was implemented by United Kingdom. Consequently all procedures on opening and maintaining a bank account are similar to those in UK. In addition, there is a separate law (Law on Offshore) on offshore banking activities. Law on Offshore also sets deposit insurance policy by Gibraltar Deposit Guarantee Board.

Many Gibraltar banks provide online banking services. Gibraltar provides high degree of bank secrecy. Identity of offshore banking account holder is confidential and known only to the bank. Client information is only disclosed if there is a local court order and a serious crime is committed.

According to European Union common passport principle licensed EU banks can establish branches in Gibraltar by only making a notification. Similarly Gibraltar banks also enjoy such an opportunity. Majority of banks operating in Gibraltar are branches of EU, UK and US banks.

Gibraltar offshore banking sector favors wealthy deposits, since it sets preferential rates for large deposits ($10,000-100,000). Only if deposit exceeds certain level, special treatment comes into force.