Financial Crime World

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Malta Takes Steps to Combat Money Laundering

A Stronger Approach to Anti-Money Laundering Policy

VALLETTA, MALTA - Since the first evaluation, the Maltese authorities have made significant efforts to address legal and institutional deficiencies in their anti-money laundering policy.

Key Initiatives

  • Ratified the Council of Europe Convention on Laundering, Search, Seizure and Confiscation of the Proceeds of Crime
  • Extended the list of predicate offenses
  • Established the Financial Intelligence Analysis Unit (FIAU) as an independent government agency
  • Abolished bearer accounts in 2000
  • Issued a joint directive with the Malta Stock Exchange and the Malta Financial Service Centre to refrain from undertaking transactions involving nominee shareholding without full disclosure of beneficial owners

Strengthening Regulations

Malta has prepared a Bill to amend its Criminal Code, which is expected to be adopted soon. The bill includes:

  • Increased penalties for money laundering offenses
  • Stricter regulations on financial institutions

Unifying Financial Regulatory Agencies

The Malta Financial Services Centre (MFSC) will soon be restructured into a single regulatory agency, the Malta Financial Services Authority (MFSA). The MFSA will assume full regulatory and supervisory responsibilities within the financial sector, including:

  • Insurance and investment services operators
  • Collective investment schemes
  • Remaining offshore companies

Enhanced Supervision

The MFSC has reinforced its activities of on-site supervision of investment services license holders since the first evaluation. It is also implementing a comprehensive on-site supervision program with regard to insurance business and nominees.

Central Bank Retains Responsibility for Financial Stability

The Central Bank of Malta will continue to operate exchange controls, oversee payment systems, and ensure financial stability, while its regulatory and supervisory responsibilities have been transferred to the MFSA.

These steps demonstrate Malta’s commitment to combating money laundering and improving its financial regulatory framework.