Financial Crime World

Financial Crime Investigation Procedures in Malta: A Step-by-Step Guide

Malta has established the Financial Intelligence Analysis Unit (FIAU) as its national central agency to combat money laundering and terrorism financing. The FIAU plays a crucial role in collecting, analyzing, and disseminating information to prevent financial crimes.

Mission Statement

According to the FIAU’s mission statement, its primary objective is to:

  • Protect Malta’s financial system and community from serious crime
  • Combat money laundering and funding of terrorism through:
    • Generation and dissemination of useful intelligence
    • Application of effective and proportionate preventative measures
    • Collaboration with private and public sector partners

Procedures

The FIAU carries out its functions through various procedures, including:

  • Intelligence Analysis: Analyzing information to identify potential money laundering schemes and terrorist financing activities.
  • Supervision: Monitoring financial institutions’ compliance with anti-money laundering (AML) and counter-terrorism financing (CFT) regulations.
  • Enforcement: Taking action against financial institutions that fail to comply with AML/CFT regulations.
  • Guidance: Providing guidance and implementing procedures to help financial institutions comply with AML/CFT requirements.
  • Training and Capacity-Building: Offering training programs for financial institutions and other stakeholders to ensure compliance with AML/CFT regulations.

AML/CFT Framework

Malta’s AML/CFT framework is based on a range of legislation, including:

  • Maltese laws
  • EU directives
  • Financial Action Task Force (FATF) Recommendations

The FIAU provides guidance and implementing procedures to help financial institutions comply with these requirements, which include:

  • Reporting Suspicious Transactions: Reporting suspicious transactions to the FIAU.
  • Conducting Customer Due Diligence: Verifying customer identities and conducting background checks.
  • Maintaining Records: Keeping accurate records of all transactions.

Public-Private Partnerships

The FIAU engages in public-private partnerships to promote effective AML/CFT practices among financial institutions and other stakeholders. Initiatives include:

  • AML/CFT Joint Committee: A committee that brings together representatives from the private sector, government, and regulatory bodies to discuss AML/CFT issues.
  • Forum for AML/CFT Consultants: A forum for consultants and experts in AML/CFT to share knowledge and best practices.

Annual Report

The FIAU’s annual report provides valuable insights into its activities and achievements in combating financial crime. The report highlights:

  • Successes in identifying and disrupting money laundering schemes
  • Efforts to enhance cooperation with international partners to combat terrorism financing

Conclusion

Malta’s financial crime investigation procedures provide a robust framework for preventing and detecting financial crimes, and the FIAU plays a vital role in protecting the country’s financial system and community from serious crime.