Financial Crime World

Malta Takes Significant Steps in Combating Money Laundering and Terrorist Financing

According to a new report published by MONEYVAL, Malta has made significant progress in combating money laundering and terrorist financing. The country’s efforts have resulted in an upgrade of its compliance ratings with the Financial Action Task Force (FATF) standards.

Assessment and Findings

MONEYVAL assessed Malta’s implementation of anti-money laundering and combating the financing of terrorism (AML/CFT) measures and found that the country has addressed deficiencies identified during an assessment in 2019. The report highlights positive steps taken by Malta to:

  • Improve the application of preventative measures
  • Enhance transparency of legal entities
  • Strengthen supervision
  • Increase international cooperation

Compliance Ratings

As a result of these efforts, MONEYVAL has upgraded Malta’s compliance ratings from “partially compliant” to “largely compliant” or “compliant” for nine FATF recommendations.

Virtual Assets and Regulation

Malta was also commended for its swift implementation of new international requirements for virtual assets, including the most prominent virtual currencies and providers of these assets. The country was among the first to establish a regulatory framework and assess money laundering and terrorist financing risks in this area. As a result, Malta’s rating on the implementation of this recommendation has been upgraded from “partially compliant” to “largely compliant”.

Progress and Next Steps

Malta’s success in addressing technical compliance deficiencies within two years is impressive, with the country now fully compliant with 12 out of 40 FATF recommendations and largely compliant with another 28. MONEYVAL will continue to monitor Malta’s implementation of these measures and expects further progress reports from the country.

Conclusion

Although Malta will remain under enhanced follow-up for the next two years, the report acknowledges that the country has made significant progress in strengthening its AML/CFT measures. With continued efforts, Malta is expected to maintain its improved compliance ratings and become a leader in the fight against money laundering and terrorist financing.