Malta Malta

New Documents

Malta’s Financial Intelligence Analysis Unit shared the country’s most recent National Risk Assessment on money laundering, and terrorist financing, proliferation financing, and financial sanctions risks.

The Financial Intelligence Analysis Unit of Malta published a fact sheet that compiles regulatory enforcement actions relating to the most serious and material breaches identified in 2021 and 2022.

News

Enforcement Actions

Malta’s Financial Intelligence Analysis Unit penalized the San Gwann, Malta-based remote gaming operator for failure to comply with the Prevention of Money Laundering and Funding of Terrorism Regulations.

The Malta Financial Intelligence Analysis Unit imposed a total of €89,450 in administrative fines on 35 regulated entities for late submissions or failure to submit the 2023 Risk Evaluation Questionnaire as required under the Prevention of Money Laundering and Funding of Terrorism Regulations.


Important Facts

  • The U.S. State Department labels Malta as a monitored jurisdiction. The country's location between North Africa and Italy makes it a transit point for narcotics and human trafficking to Europe. The major sources of illegal proceeds are trafficking of cocaine, heroin and cannabis resin and economic crimes, such as fraud and misappropriation. Illicit proceeds generated are not large and are primarily linked to domestic offenses. No organized criminal groups have been detected committing money laundering on behalf of others in Malta, and the risk of terrorist financing is low. Contraband smuggling does not appear to be a significant source of illicit proceeds. Foreigners who route their illicit gains to local Maltese bank accounts generate a significant volume of laundered funds.
  • KYC Covered Entities:  Banks, currency exchange offices, and money remittance/transfer services; stockbrokers; insurance companies; real estate agencies; auditors, accountants, notaries, and tax advisors; trust and asset managers, company formation agents, and nominee shareholders; casinos; auctioneers; and dealers in art, precious metals, and stones
  • STR Covered Entities:  Banks, currency exchange offices, and money remittance/transfer services; stockbrokers; insurance companies; real estate agencies; auditors, accountants, notaries, and tax advisors; trust and asset managers, company formation agents, and nominee shareholders; casinos; auctioneers; and dealers in art, precious metals, and stones
  • Enhanced Due Diligence Procedures for PEPs: Foreign: Yes; Domestic: No
  • Money Laundering Criminal Prosecutions/Convictions: Prosecutions: 4 (January – August, 2015); Convictions: 4 (January – August, 2015)
Source: 2016 International Narcotics Control Strategy Report (INCSR)

Rankings

FATF i | 2013 Methodology

Technical Effectiveness
Compliant : 12 High : 0
Largely Compliant : 28 Substantial : 2
Partially Compliant : 0 Moderate : 6
Non-Compliant : 0 Low : 3

Malta's technical compliance was re-rated in a May 27, 2021 follow-up report

BASEL i

Rank : 64/110
Score : 5.45/10

TRANSPARENCY INTERNATIONAL i

Rank : 49/180
Score : 54/100

Tax Justice Network i

Rank : 18/133
Score : 62/100