Malta

New Documents

The Malta Financial Services Authority published its Annual Report 2020 and audited financial statements for the year 2020, which look at the regulator’s activities over the past year with respect to supervisory, anti-money laundering and counterterrorist financing efforts.

The Financial Intelligence Analysis Unit of Malta issued revised Implementing Procedures – Part 1, which set out the identification and verification of identity requirements that must be implemented when a customer is a foundation, an association or a trust.

News

Enforcement Actions

The Malta Financial Intelligence Analysis Unit issued an administrative measure imposing a €26,500 fine on an unnamed real estate company after a 2020 compliance review uncovered breaches of the Prevention of Money Laundering Act.

The Malta Financial Intelligence Analysis Unit issued an administrative measure imposing a €259,927 fine on the St. Julian’s, Malta-based financial institution following a 2020 on-site compliance review that uncovered anti-money laundering and counterterrorist financing deficiencies.


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 : 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