Financial Crime World

Malta Makes Strides in Compliance Monitoring and Reporting, OECD Report Reveals

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A recent report published by the Organisation for Economic Co-operation and Development (OECD) has found that Malta has made substantial progress in implementing international standards of transparency and exchange of information upon request.

Progress Towards Full Compliance

According to the report, Malta was initially deemed partially compliant with the OECD’s standards in 2020. However, since then, it has made significant strides towards full compliance. The Global Forum’s Peer Review Group scrutinized information exchange requests processed between July 1st, 2019 and June 30th, 2022, and found that Malta had implemented enhanced measures to improve its compliance monitoring.

Areas of Excellence

The report highlighted several areas where Malta excelled:

  • Implementation of new mechanisms for monitoring and reporting on compliance with international standards
  • Efforts to remove inactive companies from the register, which has helped to improve transparency and reduce the risk of tax evasion

Challenges Ahead

However, the report also identified some challenges that still need to be addressed. One of the main concerns is the prompt handling of requests for information exchange due to resource constraints. The OECD recommended that Malta should take steps to:

  • Enhance its legislative framework to ensure that all companies are properly supervised
  • Take enforcement actions to ensure that relevant information is readily available

Government Response

The Maltese Government welcomed the report’s findings and expressed its commitment to continuing to improve its regulatory framework and practices in line with international standards. In a statement, the government said:

“We appreciate the OECD’s recognition of Malta’s efforts to enhance transparency and exchange of information. We are committed to building on this progress and addressing any remaining challenges to ensure that our regulatory framework is robust and effective.”

Impact

The report is seen as an important step forward for Malta in its efforts to improve tax transparency and compliance with international standards. It will be closely watched by financial institutions, businesses, and governments around the world as a benchmark of best practice in this area.