2014 PayExpo presentation

Location Location Location Paul G Astengo, Senior Executive – Private Clients

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"Mapping the prepaid opportunity in the UK and Europe" Gibraltar Finance is pleased to be attending, exhibiting and speaking as a Silver Sponsor at PayExpo at the Excel Centre, London in June 2014.

It is a pleasure to be part of the team promoting Gibraltar as a fast growing, established and important e-money centre of excellence offering a gateway to the European Union.

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Gibraltar – an onshore European finance centre Gibraltar Finance promotes Gibraltar as the EU domicile of choice for financial services; this includes a growing e-money sector.

Gibraltar is a well regulated, transparent and internationally-cooperative jurisdiction with access to financial markets including the EU single market in

financial services.

Our proposition is offered in a modern environment offering competitive corporate tax and a high quality

infrastructure that creates a compelling combination.

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Gibraltar is a self-governing and self-financing parliamentary democracy within the European Union. A British Overseas Territory, it is economically prosperous with a highly-diversified economy covering financial services (including e-money), e-gaming, shipping and tourism.

Given its status within the EU, Gibraltar-licensed banks, including e-money institutions, benefit from access to the single European market and therefore a market of over 500m people.

EU Treaties apply to Gibraltar and, uniquely, transposition is up to date but with exemptions from: VAT, Customs Union and Common Agriculture Policy.

Only common law jurisdiction in continental Europe (courts, statutes and principles of equity based on English law).

Very well developed professional community and has it’s own legislature.

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Economy GDP growth touching 7.8% per annum.

Ranked in the top 20 in global terms of GDP growth Gross public debt has been reduced to 27.5% and is

forecast to reduce further during the current financial year.

Net public debt stands at c.24% of GDP.

Consistently producing budget surplus; for financial year 2013/2014 it is forecast to be a record.

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Taxation 10% corporate tax.

No tax on investment income.

No capital gains tax.

No wealth tax.

No inheritance tax.

No VAT. No exchange controls.

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Why emoney firms should choose Gibraltar?

No VAT. Non face to face KYC permitted.

Active issuers in the jurisdiction.

A fast growing sector, established in 2006.

Quality, speed to market, location, reputation and strength of regulation.

Internationally recognised companies already based here.

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Passporting Passporting of financial services is a European Union mechanism which allows for firms authorised to provide financial services in one jurisdiction to provide them in another without the need for authorisation in this second jurisdiction.

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Regulation The Financial Services Commission (FSC) is an independent regulatory authority based on a UK model and which at least meets international standards (EU and UK primarily).

US FATCA and UK FATCA and E5 Pilot programme for AML and exchange of information.

Tax evasion is a criminal offence.

FATF and IMF reviewed.

27 TIEAs, the Multilateral Convention on Mutual Administrative Assistance on Tax Matters extended to Gibraltar since 1st March 2014 together over 100 international tax agreements in effect.

PSD and EMD2 transposed in a timely manner.

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Regulation The e-money community enjoy an excellent working relationship with the Regulator.

The present CEO of the FSC has a background in regulation in the UK. There is a wealth of knowledge and experience within the FSC. Genuinely approachable and open to discussion this provides for a flexible, dynamic and speedy regulatory process.

Real spirit of working together to achieve results.

State of the art and competitive product proposition.

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Opportunities for the pre-paid market Card, peer to peer and mobile – evolving proposition.

Seasonal workforce - flexibility of labour market.

Reduced availability of traditional payment methods.

Government and other large organisation payments – control and cost reduction.

Settlement of “affiliate” programmes payments and other “click through” web sites - mass small value payments.

Available for use by minors – gifts, further education and travel.

Can be used internationally – remote top-up.

Rigorous AML environment benefits from leading edge technology.

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Opportunities for the pre-paid market Significant prepaid growth is expected at an annual rate of 22% through 2017 (source Mastercard).

In this period it is expected to reach $822 billion (Europe $28bn to $149 bn).

Prepaid represents the fastest growing segment of card-based payments, supporting numerous vertical markets.

Huge volume of unbanked individuals require access to fast and flexible payment systems.

Greater mobility of world population requires an equally mobile “money� system.

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Opportunities for the pre-paid market Corporate payroll.

Green credentials – reduction in physical resources.

Europe and the UK are leaders in innovation and host many trusted brands.

Gibraltar is a market leading and much envied egaming centre of excellence this is believed to be hugely complimentary with emoney.

Our ambition is to achieve equality of size and importance between these industries at speed and be an EU based global hub.

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FURTHER INFORMATION Gibraltar Finance is responsible for the development of new business and is a centralised source of information and direction

Paul Astengo paul.astengo@financecentre.gov.gi Tel: +(350) 200 50011

Gibraltar Finance @GibFinance facebook.com/GibraltarFinanceCentre youtube.com/GibraltarFinance

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