Financial Crime World

Malta’s National Risk Assessment Reveals Decrease in Money Laundering Residual Risk Amid Notable Improvements Across Sectors

The Maltese government has published its 2023 National Risk Assessment (NRA), which highlights a significant decrease in overall money laundering residual risk compared to the previous edition. The report was developed in collaboration with government authorities and representative bodies from the private sector.

Notable Improvements Across Sectors

The NRA’s findings show that notable improvements have been registered across various sectors, including:

  • Legal persons
  • Trust and company service providers
  • Banking
  • Investment services
  • Accountants and auditors
  • Gaming
  • Virtual financial assets service providers

These sectors have seen a decrease in their money laundering risk levels, reflecting the effectiveness of mitigating measures implemented by authorities and the private sector.

Sectors Still Pose Higher Risk

However, other sectors such as:

  • Financial institutions
  • Real estate agents
  • Dealers in high-value goods

still pose a higher risk of money laundering due to their susceptibility to these illegal activities. The report identifies specific typologies that present a higher level of residual risk, including:

  • Abuse of cash and cash-based businesses
  • Use of Maltese registered companies lacking sufficient links to Malta
  • Complex corporate structures
  • Acquisition of high-value movable and immovable property

Continued Threats

The NRA also notes that laundering proceeds from:

  • Drug trafficking
  • Foreign organised crime
  • Fraud (including cybercrime)

continue to pose a significant threat. Residual risks associated with:

  • Terrorism financing
  • Proliferation financing
  • Targeted financial sanctions

were found to be moderate.

Obligations for Subject Persons

All subject persons are obligated to consider the risks identified in this latest version of the NRA as part of their risk assessment process, reviewing and updating their controls, policies, and procedures as necessary to reflect and mitigate the identified risks. The 2023 NRA is available for download on the National Coordinating Committee’s website.

[Source: National Coordinating Committee on Combating Money Laundering and Funding of Terrorism]