Financial Crime World

Malta Slapped with Infringement Procedure Over Failure to Combat Cybercrime

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The European Commission has launched an infringement procedure against Malta, citing the country’s failure to comply with the EU Cybercrime Directive aimed at strengthening national laws and introducing tougher sanctions against cybercriminals.

Background

  • The EU Cybercrime Directive requires member states to designate points of contact available 24/7 to ensure improved cooperation between national authorities.
  • The commission is concerned about the growing menace of attacks against information systems, especially those linked to organized crime, as well as potential terrorist or politically motivated attacks on critical infrastructure.

Non-Compliance

  • Malta, along with Hungary and Latvia, incorrectly transposed measures set out in the directive, particularly regarding certain offenses, penalty levels, and jurisdiction.
  • Malta failed to transpose the directive into its domestic laws by the September 2015 deadline.

Consequences

  • Malta now has two months to respond to the commission’s concerns before the action escalates to a reasoned opinion.
  • If Malta fails to comply, the commission may issue a formal notice, which could lead to further legal action.
  • The commission is also taking issue with Malta over its failure to correctly implement EU rules on fighting fraud against the Union’s financial interests.
  • Malta joins Estonia, Hungary, and the Netherlands in receiving a letter of formal notice regarding this matter.

Impact

  • This latest development has raised concerns about the effectiveness of Malta’s efforts to combat cybercrime in the financial industry, which is particularly vulnerable to attacks.
  • The European Commission’s move serves as a wake-up call for the Maltese authorities to take immediate action to strengthen their laws and cooperation mechanisms to tackle the growing threat of cybercrime.

Conclusion

The EU’s action against Malta highlights the importance of member states taking seriously their responsibilities in combating cybercrime. It is crucial that Malta takes swift action to address these concerns and demonstrates its commitment to protecting its citizens and businesses from this increasingly significant threat.