FIAU Director Highlights Importance of Collaboration in Fight Against Money Laundering
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Getting Off the Greylist is Just the Beginning
In a bid to get Malta off the greylist, only three out of 58 action points outlined by MONEYVAL in its 2019 assessment were sufficient to move the country closer to compliance. However, Acting Director of the Financial Intelligence Analysis Unit (FIAU), Alfred Zammit, emphasized that getting off the greylist is just the beginning.
“We cannot relax our efforts,” Mr. Zammit warned. “Business models in financial services are becoming increasingly complex, and our staff must remain ahead of those with bad intentions.”
The FIAU’s Strength Lies in Its Expertise
The FIAU’s strength lies in its ability to analyze cases and identify red flags, thanks to the expertise of its employees who come from the private sector. The unit also provides comprehensive in-house training for its staff, as well as overseas training opportunities.
- Comprehensive in-house training
- Overseas training opportunities
- Expertise of employees from the private sector
Collaboration is Key
One of the key aspects of the FIAU’s work is its collaboration with other authorities, both domestically and internationally. Mr. Zammit stressed that the unit does not operate in a silo, exchanging information with entities such as:
- Police
- Commissioner for Revenue
- MFSA (Malta Financial Services Authority)
- MGA (Malta Gaming Authority)
Last year alone, the FIAU shared over 7,900 reports with various entities, while sending over 6,900 intelligence reports to foreign counterparts. This sharing of intelligence is crucial in the fight against money-laundering and terrorist financing.
The Importance of Collaboration
While the FIAU’s role is to collect and analyze intelligence, it cannot take its findings further. Therefore, collaboration with other authorities is essential. Mr. Zammit highlighted that the unit works closely with the Police, providing analytical intelligence reports and disseminating intelligence.
- Collaborative approach with other authorities
- Sharing of intelligence reports
Challenges Ahead
However, he warned against expecting quick outcomes, noting that criminal investigations and prosecutions often require evidence from overseas, which can be a time-consuming process. He welcomed the government’s efforts to reform the judicial process, but emphasized that there is still much work to be done.
The FIAU is currently waiting for appeal judgments from the Constitutional Court regarding the imposition of administrative penalties. The unit has appealed three court decisions finding that its enforcement powers and responsibilities are unconstitutional.
Ensuring Effective Enforcement
Mr. Zammit stressed that certainty in enforcement is crucial, with proportionate, effective, and dissuasive action being taken when breaches occur. He emphasized that an efficient and effective enforcement system is critical to a country’s AML/CFT framework, and that every effort must be made to ensure this is the case.
Remaining Optimistic
Despite the challenges ahead, Mr. Zammit remains optimistic, stating that these legal challenges will give Malta the opportunity to mature its system.