Malta

New Documents

The Financial Intelligence Analysis Unit of Malta announced that access to the Malta Business Registry will be amended following a decision by the Court of Justice of the European Union.

The Financial Intelligence Analysis Unit of Malta launched its four-year strategy to demonstrate to the public its continued commitment to fighting money laundering and terrorist financing.

News

Enforcement Actions

The Financial Intelligence Analysis Unit of Malta issued a €82,966 penalty against the Valletta, Malta-based subsidiary of the British multinational banking and financial services company HSBC, highlighting violations of the Prevention of Money Laundering and Funding of Terrorism Regulations.

The Malta Financial Intelligence Analysis Unit issued a €23,468 penalty against an unnamed remote gaming operator for violations of the Prevention of Money Laundering and Funding of Terrorism Regulations uncovered during an onsite compliance review carried out in 2018.


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