Malta’s Financial Institutions Take Steps to Enhance Security Measures Following Release of National Risk Assessment Report
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Malta’s financial institutions are being urged to step up their security measures in light of the latest National Risk Assessment (NRA) report, which highlights the country’s exposure to threats and vulnerabilities related to money laundering, terrorist financing, proliferation financing, and targeted financial sanctions.
Overview of the 2023 NRA Report
The 2023 NRA, coordinated by the National Coordinating Committee on Combating Money Laundering and Funding of Terrorism, provides a comprehensive assessment of Malta’s risk landscape. The report highlights both positive trends and areas that require attention, providing crucial insights into existing risks and enabling institutions to adjust their compliance approach and risk mitigation strategies accordingly.
Key Findings
- Malta’s overall money laundering residual risk has decreased compared to 2018, reflecting the effectiveness of mitigating measures implemented by authorities and the private sector.
- Notable improvements were registered across various sectors, including legal persons, trust and company service providers, banking, investment services, accountants and auditors, gaming, and virtual financial assets service providers.
Remaining Vulnerabilities
However, certain sectors, such as:
- Financial institutions
- Real estate agents
- Dealers in high-value goods
remain susceptible to a higher risk of money laundering. The report identifies laundering proceeds from:
- Drug trafficking
- Foreign organised crime
- Fraud (including cybercrime)
as some of the higher risks.
Recommendations for Subject Persons
The 2023 NRA recommends that all subject persons consider the following risks as part of their risk assessment process, reviewing and updating their controls, policies, and procedures as necessary to reflect and mitigate the identified risks:
- Residual risks associated with terrorism financing
- Proliferation financing
- Targeted financial sanctions
Availability of the 2023 NRA Report
The 2023 NRA report is now available for download, providing a valuable resource for financial institutions seeking to strengthen their security measures and comply with relevant regulations.