Malta

New Documents

The Malta Financial Intelligence Analysis Unit released its annual report, highlighting the regulator’s oversight activities for the year 2021 to 2022 and its efforts to implement the recommendations of the Financial Action Task Force.

Malta’s Financial Services Authority emphasized the importance of identifying and verifying ultimate beneficial ownership during a webinar organized by Sigma Risks consultancy firm.

News

Enforcement Actions

The Malta Financial Intelligence Analysis Unit issued an administrative measure imposing a €244,679 fine on the St. Julian’s, Malta-based investment services provider after an offsite compliance review uncovered violations of the Prevention of Money Laundering and Funding of Terrorism Regulations.

The Financial Intelligence Analysis Unit issued imposed a €20,145 fine on an unnamed corporate service provider that failed to identify and verify the beneficial owner of a corporate customer, among other 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 : 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