Financial Crime World

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Tribution: What to Expect from the Supervisor and What’s Expected of You

In a bid to combat money laundering and terrorist financing (AML/CFT), the Financial Intelligence Analysis Unit (FIAU) has outlined its supervisory intervention process, which aims to ensure that financial institutions and other entities are complying with AML/CFT obligations.

Pre-Intervention Process

Before conducting a supervisory intervention, assessors will request documentation and information from subject persons, including:

  • Customer lists
  • AML/CFT policies and procedures
  • Additional information may be requested during the intervention to demonstrate compliance with AML/CFT obligations

Subject persons are expected to collaborate throughout the process and provide necessary documentation in a timely manner. Failure to comply with deadlines or provide required information may lead to enforcement action.

Collaboration Key

The FIAU will notify subject persons of the supervisory intervention and establish a single point of contact for exchanging information and documentation. Assessors may also need to speak with other employees as part of the process.

Feedback and Commitment

The outcome of a supervisory intervention depends on various factors, including:

  • The overall regard for AML/CFT obligations
  • Whether serious breaches have been identified

Outcomes can include:

  • Closure letter: No/minor AML/CFT shortcomings are identified
  • Remediation letter: Non-serious shortcomings are identified, and subject persons must implement a remedial action plan within a stipulated timeframe
  • Potential breaches letter: Serious shortcomings are identified, and subject persons are requested to submit representations

What to Expect

Subject persons can expect the FIAU to provide support during the remedial action process. Failure to comply with remedial actions may lead to enforcement action.

For more information on the supervisory intervention process, visit https://fiaumalta.org/news/https-fiaumalta-org-event-aml-supervisory-examinations-what-to-expect-fiau-malta/.

Contact Us

Subject persons can contact the Supervision Section by email at compliance@fiaumalta.org with any queries regarding the supervisory process.

Sector-Specific Controls

The FIAU has outlined specific controls for various sectors, including:

  • Credit and financial institutions
  • Remote gaming operators
  • Land-based casinos
  • Investments
  • Company service providers
  • Auditors and accountants
  • Real estate and notaries

These controls aim to prevent cash derived from the proceeds of crime from entering the financial system through the misuse of credit and financial institutions’ products and services, among other measures.

AML/CFT Compliance Monitoring Plan

The FIAU has published its AML/CFT compliance monitoring plan for July 2024 to June 2025, which outlines the supervisory work planned during the annual cycle. The plan includes supervisory interventions by the Malta Financial Services Authority and the Malta Gaming Authority, among others.