Malta

New Documents

The Malta Financial Services Authority published a document outlining the supervision of virtual financial assets in the country, including agents, service providers and initial coin offerings.

The Financial Intelligence Analysis Unit of Malta published Implementing Procedures Part II for company service providers to provides guidance on the application of anti-money laundering and counterterrorist financing requirements pursuant to the Company Service Providers Act.

News

Enforcement Actions

The Malta Financial Intelligence Analysis Unit issued a revised administrative measure targeting the St. Julian’s, Malta-based institution for anti-money laundering failures, highlighting that the initially imposed penalty of €3,711,300 was reduced to €851,792.50 following the appeals process.

Malta’s Financial Intelligence Analysis Unit issued a remediation directive to an unnamed financial institution after an on-site compliance review revealed breaches of 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 : 10 High : 0
Largely Compliant : 21 Substantial : 2
Partially Compliant : 9 Moderate : 6
Non-Compliant : 0 Low : 3

BASEL i

Rank : 53/141
Score : 5.48/10

TRANSPARENCY INTERNATIONAL i

Rank : 50/180
Score : 54/100

Tax Justice Network i

Rank : 18/133
Score : 62/100