Malta Tightens Financial Institution Security Measures Against Money Laundering and Terrorism Funding

The National Coordinating Committee on Combating Money Launderling and Funding of Terrorism has released an updated National Risk Assessment (NRA) to assess Malta’s vulnerability to threats related to money laundering, terrorism financing, proliferation funding, and targeted financial sanctions.

Increased Collaboration Yields Improved Assessment

This revised assessment comes as a result of increased collaboration between government authorities, law enforcement agencies, and the private sector. The NRA identifies areas of high risk for financial institutions, including designated non-financial businesses and professions, and legal persons.

Medium-High Level of Residual Risk

According to the report, these entities are exposed to a medium-high level of residual risk related to money laundering. However, some industries have seen a decrease in their ML residual risk levels due to enhanced mitigating measures.

Guide for Financial Institutions and Stakeholders

The updated NRA serves as a guide for financial institutions and other stakeholders to update their Business Risk Assessments and implement necessary risk-based mitigation measures. Regulatory authorities urge subject persons to refer to the report’s recommendations to ensure compliance with anti-money laundering and combating the financing of terrorism regulations.

Recommendations for Compliance

• Financial institutions should review and update their Business Risk Assessments in accordance with the NRA
• Implement necessary risk-based mitigation measures to reduce residual risk
• Refer to the report’s recommendations for guidance on compliance with anti-money laundering and combating the financing of terrorism regulations

Additional Assistance Available

For further clarification or assistance in updating business risk assessments, industry professionals can contact Mario Zerafa and/or Jonathan Camilleri at Ganado Advocates.