Financial Crime World

Malta’s Money Laundering Detection Methods Come Under Scrutiny

As part of its commitment to combating money laundering and funding of terrorism, the Malta Gaming Authority (MGA) has taken on a crucial supervisory role in monitoring compliance with anti-money laundering and combating the financing of terrorism (AML/CFT) regulations among casino and gaming licensees.

AML/CFT Obligations for Gaming Licensees

Under Malta’s AML/CFT obligations, gaming licensees are required to adopt a risk-based approach in applying measures, controls, and procedures to prevent or mitigate money laundering and terrorist financing. This includes:

  • Performing a business risk assessment to identify vulnerabilities
  • Devise policies and procedures outlining how they will comply with customer due diligence and other AML/CFT obligations

Appointing a Money Laundering Reporting Officer (MLRO)

Licensees are also required to appoint an MLRO of sufficient seniority, who is responsible for:

  • Analyzing unusual or suspicious activity
  • Filing reports with the Financial Intelligence Analysis Unit (FIAU) as necessary
  • Being registered with the FIAU and approved by the MGA

Resources Available to Aid in AML/CFT Efforts

Malta’s gaming sector has access to a range of resources to aid in its AML/CFT efforts, including:

  • The Implementing Procedures issued by the FIAU, which provide legally binding guidelines on how to comply with AML/CFT regulations
    • Part I applies to all sectors, while Part II is specific to each sector

Comprehensive Framework for Gaming Licensees

The FIAU’s Implementing Procedures have been designed to provide a comprehensive framework for gaming licensees to follow in their efforts to detect and prevent money laundering and terrorist financing.

Conclusion

With the MGA’s supervisory role and the resources available to gaming licensees, Malta is well-positioned to remain at the forefront of global efforts to combat these serious crimes.