Malta

New Documents

The Malta Financial Services Authority issued a revised version of the Implementing Procedures Part I, which aim to assist regulated entities in understanding and fulfilling their obligations under the Prevention of Money Laundering and Funding of Terrorism Regulations.

The Financial Intelligence Analysis Unit of Malta announced that the new version of GoAML Web is now available to test, with the main changes covering user interface and the process for submitting new registration.

News

Enforcement Actions

The Malta Financial Intelligence Analysis Unit issued an administrative measure imposing two fines totaling €337,422 on the Sliema, Malta-based financial institution for breaches of the Prevention of Money Laundering and Funding of Terrorism Regulations.

The Malta Financial Intelligence Analysis Unit issued an administrative measure imposing a €435,576 fine on the Birkirkara, Malta-based financial institution after a 2020 thematic compliance review uncovered 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 : 52/179
Score : 53/100

Tax Justice Network i

Rank : 18/133
Score : 62/100